Calnex Solutio. Regulatory News (CLX)

26 Oct 2005 07:00

Calyx Group PLC26 October 2005 FOR IMMEDIATE RELEASE 26 October 2005 Calyx Group plc ("Calyx") Expansion into the UK market Calyx, the largest single-source provider of information and communicationtechnology ("ICT") network solutions throughout Ireland, today announces theacquisition of ITS Technology Services Ltd ("ITS"), a UK-based IT infrastructureservices Company for a total consideration of £2.5 million (€3.68 million).Under the terms of the agreement £1.88 million (€2.76 million) will be paid incash and £120,000 (€176,000) in shares (based at Friday's closing price of 65.5pper share). There is also a £500,000 (€735,000) earn-out split £380,000(€559,000) cash and £120,000 (€176,000) in shares in March 2006 subject toagreed performance criteria. The acquisition of ITS represents Calyx's first move into the UK ICT market andwill allow Calyx to leverage off ITS's existing relationships with vendors suchas Cisco, Nortel and Microsoft. Calyx will be deploying its innovative managedservice offering, from its new state-of-the-art Network Operating Centre, viaITS to the existing UK customers and also into new customers. ITS is already an established provider of converged voice and data solutions forthe healthcare, publishing, emergency services and government market, and whoseclients include: St. Ives Group plc - the leading print press company;Associated Newspapers Ltd - a subsidiary of the Daily Mail and General Trustplc; Gwent Healthcare NHS Trust - one of the largest and busiest NHS Trusts inthe UK. ITS was formed in 2002 through an MBO of the UK technology services division ofIntergraph, the global provider of spatial information management (SIM)software. The MBO was led by Managing Director Kieran Archer and Sales DirectorAndy McCathie, both of whom will remain with the enlarged Company. The Calyx board of directors believe that ITS has good synergies with Calyx'salready strong Irish business as well as a strong and established managementteam, which will help the Calyx Group develop in the UK. Currently there are noplans for redundancies resulting from the acquisition but, conversely, furtherinvestment and growth is expected as the Calyx brand is rolled out within theUK. In the year ended 31 December 2004 ITS had revenues of £3.12m (€4.6m), profitbefore tax of £0.45m (€0.65m) and net assets worth £52,000 (€76,000). Calyx is expecting to make further investment over the next 12 months in orderto provide ITS with the capability to deliver Calyx's advance solutions basedaround compliance and remote managed services. In addition this investment willenable ITS to broaden its customer reach and increase its market share.Thereafter, the acquisition is expected to enhance Calyx's earnings per share. Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said; "I am delighted to announce this ITS acquisition - our first to bring Calyx intothe UK market. It has always been our stated intention, from the time of ourIPO, to launch and develop in the UK market and the acquisition of ITS providesthe ideal springboard from which to do this. ITS has an experienced and wellregarded management team who will expand and develop the Calyx offering acrossthe UK market. ITS also has a strong customer base which we plan to develop andgrow through the introduction of Calyx's advanced remote managed services." "The ITS acquisition is another step in the execution of Calyx's strategy toprovide advanced infrastructure to its customers. Following the acquisition ofConvergent in July and of QCL last week Calyx now occupies a strong marketposition within Ireland and we now believe we are in a good position to focus onthe buoyant UK ICT market." -ENDS- For further details please contact: Calyx Group plc Tel: +353 1 676 3363Maurice Healy, Chief Executive Buchanan Communications Tel: +44 (0)20 7466 5000Tim Thompson / James Strong Notes to Editors This is the second acquisition announcement by Calyx in recent days. OnThursday, they announced the acquisition of QCL, the Cork based IT product andservices company for a total consideration of €1.283 million (£871,000). This information is provided by RNS The company news service from the London Stock Exchange