Brady Regulatory News (BRY)

12 November 2012

Brady plc ("Brady" or the "Company" or the "Group")

Acquisition of Systems Alternatives International LLC

Brady, the leading provider of trading, risk management and settlement solutions to the energy, metals and soft commodities sectors, today announces that it has agreed to acquire Systems Alternatives International LLC ("SAI"), a leading provider of systems to the metal recycling markets based in Maumee, Ohio, US.

The aggregate consideration of up to US$9.95 million (approximately £6.22 million) will be payable as to US$6.25 million (approximately £3.91 million) on completion in cash and up to US$3.70 million (approximately £2.31 million) subject to SAI meeting certain financial targets by December 2014. Thedeferred contingent consideration will be payable in three tranches following the end of calendar years 2012, 2013 and 2014 and will be satisfied by cash of up to US$1.50 million (approximately £0.94 million) and the issuance of new ordinary shares in the Company up to the value of US$2.2 million (£1.37 million).

Brady's strategy is to complement organic growth with the acquisition of suitable companies to enhance the Company's product offering and customer base. The Directors believe that SAI will provide Brady with a leading position in the important and growing recycling market and further strengthen Brady's position as the leading supplier of metal trading solutions. In addition, the Directors believe that the acquisition is strategic and compelling for the following reasons:

·; the global metals recycling market is estimated at $200 billion per annum and is currently serviced by a fragmented array of software vendors, providing an opportunity for stronger suppliers to service the globally diverse clients;

·; metal recycling contributes significantly to the production of metal commodities with, for example, approximately 70% of the world's aluminium being recycled;

·; Brady's customer base will be significantly increased as a result of the acquisition, consolidating its position as the leading metal solutions supplier. SAI enjoys a leading position in the recycling market with six of the top ten US recyclers using SAI solutions;

·; a number of Brady's existing clients are already recyclers thus providing further cross selling opportunities;

·; extends product coverage with the addition of an end-to-end solution from scrap yard to supply-chain management, profit analysis and forecasting for recycling organisations in the ferrous, non-ferrous, paper and steel sectors;

·; further increase in critical mass. The Directors believe that the acquisition of SAI will further strengthen Brady's brand and commercial presence in the Americas, complementing the Group's already strong commercial presence in mainland Europe and its growing presence in the Americas and Asia.

Information on SAI

SAI is based at the heart of the steel and metal producing and consuming industries, in Ohio, USA, providing a multi-national, multi-location system for the recycling market aimed primarily at processors, brokers, exporters and consumers in the ferrous, non-ferrous and high temperature alloy market sectors and to a lesser extent to the precious metals and paper market sectors. SAI has also recently launched a new solution designed to handle supply chain management of steel mills, serving both the integrated and non-integrated mills.

SAI has been operating since 1981 and although its clients are based primarily in North America, it has also installed its software at customer sites in Europe, as well as the Far East and Australia. SAI's unaudited accounts for the year ended 31 December 2011 show revenues of US$8.1 million (£5.1 million) generating profit before taxation of US$2.0 million (£1.3 million).

Commenting on the acquisition, Gavin Lavelle, CEO of Brady, said:

"SAI is a market leader in recycling software which is highly complementary to our existing market leading concentrates, refined and financial metals trading business and also provides both product and domain knowledge along with people skills as we expand our presence in the North American markets. This acquisition further strengthens our product offering by complementing our existing financial and risk management capabilities and provides new cross-selling and other growth opportunities. In line with previous years, the Company is now in the busiest quarter of the year with a strong sales pipeline and a number of significant licence deals in the latter stages of finalisation. We look forward to updating the market in early January 2013."

For further information please contact:

About Systems Alternatives International LLC

SAI, headquartered in Maumee, Ohio, has branch offices in California and Florida. Since 1981 SAI's experienced team has been providing scrap processors, brokers, mills and consumers of both non-ferrous and ferrous scrap and secondary metals, with integrated software solutions for financial, commercial and operations management. Some of the largest recycling firms worldwide are reliant on SAI's solutions for managing their processes from the weighbridge to the invoicing ledger. SAI's products are built from the ground up, with constant customer-driven content, ensuring the solutions remain in tune with market requirements.

For further information visit: www.sysalt.com

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity and energy markets. Brady combines fully integrated and complete solutions supporting the entire commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations, back office financials and treasury settlement, for energy, refined and unrefined metals, soft commodities and agriculturals.

Brady has 25 years' expertise in the commodity markets with over 250 customers worldwide, who depend on Brady's software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world's largest financial institutions, trading companies, miners, refiners and producers, tier one banks and a large number of London Metal Exchange (LME) Category 1 and 2 clearing members and many leading European energy generators, traders and consumers.

For further information visit: www.bradyplc.com

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