Harvey Nash Group Regulatory News (HVN)

26 Jun 2007 07:02

Harvey Nash Group PLC26 June 2007 HARVEY NASH GROUP PLC("Harvey Nash" or the "Company") Acquisition of offshore software development business Harvey Nash is pleased to announce that it has entered into an agreement toacquire SilkRoad Systems Limited and its subsidiary, SilkRoad Systems (Vietnam)Limited ("SilkRoad"), a leading technology and software development companybased in Ho Chi Minh City, Vietnam, for a maximum consideration of US$1.8million on completion plus additional payments of up to US$0.232 million overthe three years ending 30 June 2010 subject to certain profit targets beingachieved. SilkRoad, which has 135 employees and is based in Ho Chi Minh City, Vietnam,specialises in software development and business process outsourcing and is oneof the market leading IT services companies in Vietnam. For the financial yearending 30 June 2006, SilkRoad generated revenue of US$1.064 million andoperating profit of US$0.014 million. The initial consideration comprises US$1.406 million in cash, of which US$0.426million is retained for six months following completion, and 226,646 ordinary 5pshares in Harvey Nash. Commenting on the acquisition, Harvey Nash Chief Executive, Albert Ellis, said: "The acquisition of SilkRoad is an exciting expansion of Harvey Nash's offshoresoftware development capability in Asia. The Group's offshore service is ourfastest growing business in the UK, growing last year by 47%. "In addition, our strategy of focusing on longer term annuity revenues is movingforward significantly with SilkRoad's business process outsourcing service, anew offering for the group. This is a perfect fit for our existing offshoresoftware development operation. "Vietnam is Asia's fastest growing market outside China and this acquisitiongives us further access to high quality software skills which are very much indemand in Europe and the USA." 26 June 2007 Note: A conference call for analysts will take place at 08.00 UK time thismorning. In order to participate, please dial +44 (20) 3003 2666 and ask to beconnected to the Harvey Nash conference call. ENQUIRIES: Harvey Nash Tel: 020 7333 0033Albert Ellis, Chief ExecutiveRichard Ashcroft, Finance Director Numis Securities Tel: 020 7260 1000David ShaptonCharles Farquhar College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski Notes to Editors: Harvey Nash, a global professional recruitment consultancy and IT outsourcingservice provider, is committed to delivering the very best talent and ITsolutions to a broad base of clients. Its 3,500 staff and associates, operating from 30 offices covering the USA,Europe and Asia, work to the highest levels of integrity, professionalism andquality in providing its unique portfolio of services: executive search, interimmanagement, IT and finance recruitment and IT outsourcing. For more information please visit www.harveynash.com This information is provided by RNS The company news service from the London Stock Exchange