Calnex Solutio. Regulatory News (CLX)

11 Jul 2005 07:00

Calyx Group PLC11 July 2005 FOR IMMEDIATE RELEASE 11 July 2005 Calyx Group plc ("Calyx") Acquisition of Convergent and Trading Update Calyx, one of the largest single-source providers of information andcommunication technology ("ICT") network solutions throughout Ireland, todayannounces the acquisition of Convergent Systems Ireland Ltd ("Convergent"), aleading Irish supplier of communication solutions, for a total consideration ofup to €0.6 million (£0.41 million) in cash. Calyx has a broad client base to which it offers ICT network design, sales,installation, training and support and recently completed a successful Placingand Admission to AIM. Convergent was set up in December 1999 and delivers professional services,including consultancy, project management, installation, & support of voice anddata products to a wide range of business sectors. As an Avaya BusinessPartner, Convergent specialises in helping their customers to maximize the useof their existing voice and data infrastructures to reduce costs and improveefficiency. The Convergent client base includes Citigroup, One Direct, AmericanHolidays, AVX, Micros Fidellio, Dublin Tourism, Sportingbet Ireland, Accentureand Norfolkline. The Convergent acquisition will enhance Calyx's skill set particularly inrelation to professional services and systems integration. They also bring ahealthy client portfolio and a positive, ambitious approach to the convergingvoice and data market. For the year-end 31 August 2004, the most recent year of which audited figureshave been published; Convergent had revenues of €1.3 million, EBITDA of €0.25million and gross book value assets of €0.66 million. The acquisition of Convergent will be settled by an initial consideration of€0.3 million with a further earn-out payment of up to €0.3 million payable inJuly 2006, subject to appropriate performance criteria being met. Calyx Trading Update First half trading has been strong and is in line with managements'expectations, which were highlighted at the time of the Placing and Admission toAIM. Calyx continues to experience favourable trading conditions and the Boardremains confident about the prospects for the full year. Calyx will update the market on further progress at its interim results, for the6 months ended 30 June 2005, which will be announced in August 2005. Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said; "I am pleased to announce the acquisition of Convergent, following our strongfirst 3 months as a public company. This acquisition is part of our continuingacquisition strategy, as set out at the time of our Placing, and will be anideal synergistic fit. We will continue to seek appropriate acquisitions whichthe Board believe will further enhance Calyx's position within the market andprovide us with the ability to expand our services throughout Europe." For further details please contact: Calyx Group plc Maurice Healy, Chief Executive Tel: +353 1 676 3363 Buchanan Communications Tim Thompson / James Strong Tel: +44 (0)20 7466 5000 This information is provided by RNS The company news service from the London Stock Exchange