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Last checked at 
9 Jul 2008 11:00
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iomart Group plcΒ ("iomart" or the "Company")
Disposal ofΒ Ufindus
iomart Group plc the provider of managed hosting, co-location and business continuity services announces the sale of its subsidiary Ufindus Limited ("Ufindus"), a leading internet directory services company to British Telecommunications plc ("BT") for a total cash consideration of Β£20 million.
The decision to dispose of Ufindus followed aΒ strategicΒ review by the board, in which it became clear thatΒ the operation was non-core toΒ iomart's hosting and managed service strategy moving forward.Β After considerable interest from trade buyers, the decision was taken to find a new long term parentΒ forΒ Ufindus. Under theΒ agreementΒ iomart will continue to provide BT with web-hosting services for Ufindus.Β
UfindusΒ was founded by iomart in 2002 and has grown to be oneΒ of theΒ UK's largest new media directories businesses providing listing and web-sites for small and mediumΒ sizedΒ enterprise customers in theΒ UK. Ufindus' operating profit for the year ended 31 March 2007 was Β£1,457k (2006Β operating loss ofΒ Β£37k) on revenues of Β£14,095kΒ (2006 Β£10,946k), with net assets at 31 March 2007 of Β£2,658kΒ (2006 Β£1,199k).Β This disposal is expected to generate a profit of Β£15 million before goodwillΒ adjustments.
The proceeds of the sale will be usedΒ largelyΒ to assist with the funding of iomart's expansion of its hosting and managed service operations.Β The DirectorsΒ are confidentΒ that the experience and expertise available within the GroupΒ willΒ enable it to build aΒ successfulΒ hosting and managed service business.Β
Of the total cash consideration, the Company isΒ givingΒ certain warrantiesΒ and indemnitiesΒ in connection with the disposal and Β£2 million of the consideration is being placed into escrow, Β£1 million to be released after 6 months and the remainder to be released after 24 months.
iomart expectsΒ to announce its preliminary results for the yearΒ ended 31Β March 2008 on 29thΒ July.
Angus MacSween, CEO of iomart said:
"This disposalΒ of Ufindus, in thisΒ more uncertain economic environment, reflects the quality of the business that has been built up and crystallises its valueΒ for shareholders. We wish the business well under itsΒ new ownership.
The disposal will allow iomart to focus on itsΒ core offering of itsΒ managed webhosting business, Easyspace and its datacentreΒ operations, both of which areΒ expected to perform well in the current market environment".
Enquiries:
iomart Group plc Tel: 0141 931 6400Β
Angus MacSweenΒ
Richard Logan
Β
KBC Peel Hunt Tel: 020 7418 8900Β
Oliver ScottΒ
Richard KaufferΒ
Β
ICIS Limited Tel: 020 7651 8688Β
Tom MoriartyΒ
Bob HuxfordΒ
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