Last checked at 21 Apr 2015 13:00
FOR RELEASE
21 April 2015
ACCESS INTELLIGENCE PLC
("Access Intelligence" or "the Group")
Disposal of Willow Starcom Limited
Access Intelligence Plc (AIM: ACC), a leading supplier of Software-as-a-Service (SaaS) solutions for the full life cycle management of a company's governance, risk and compliance, announces that it has today disposed of its wholly owned subsidiary Willow Starcom Limited ("Willow") to K3 Hosting Limited ("K3"), a wholly owned subsidiary of K3 Business Technology Group plc, for an aggregate consideration of £1.75 million.
Terms of the Disposal
Willow was established in 1990 as a provider of specialist IT services delivering data management and security solutions, hardware and software support and a range of managed services.
Access Intelligence has entered in to a Share Purchase Agreement with K3 to sell the entire issued share capital of Willow for £1.75 million (on a debt free/cash free basis). Access Intelligence has funded Willow's satisfaction of certain staff settlement agreements as part of the transaction amounting to £0.46 million.
The consideration was paid wholly in cash upon completion today save for a retention of £75,000, which will be released by no later than 5 January 2016, subject to satisfying certain post completion matters.
For the year ended 30 November 2014, Willow contributed revenue of £2.66 million, EBITDA of £0.37 million and a profit before tax of £0.1 million. The total value of the Net Assets being disposed of as at 30 November 2014 was £0.9 million.
Use of Proceeds
The net proceeds (after allowing for costs and the staff settlement agreements and following receipt of the retention payment), amounting to approximately £1.2 million, will provide additional working capital to support the growth and development of the Group.
Commenting on the transaction, Michael Jackson, Chairman, said
"The divestment of Willow from the Group is in line with the Group's strategic focus as a Software-as-a-Service provider. We would like to thank Mark Berry and Darren Harrison, as well as the rest of the team at Willow, for their valuable contribution to the Group and wish them and K3 every success in the future"
For further information:
Access Intelligence plc 0843 659 2940
Michael Jackson (Non-Executive Chairman)
Joanna Arnold (CEO)
Sanlam Securities UK Limited (Nominated Adviser & Broker) 020 7628 2200
Simon Clements