KCOM Regulatory News (KCOM)

29 Sep 2006 07:06

Kingston Communications(Hull)PLC29 September 2006 29 September 2006 KINGSTON COMMUNICATIONS (HULL) PLC ACQUISITION OF SMART421 Kingston Communications (HULL) PLC ("Kingston") today announces the acquisitionof Smart421 ("Smart421") for a cash consideration of £24.2 million, includingcash and cash equivalents of approximately £4.0 million. Smart421 is aspecialist in the area of business applications integration and increasinglydelivers both integration and ongoing applications managed services to blue chiporganisations. The business has developed long term partnerships with its customers andcurrently provides services to some of Europe's largest blue chip businessesincluding O2, Norwich Union, E2V and UPC. SMART421, which will be managed as a discrete business entity, provides acomplementary and strong strategic fit within Kingston and in particular, withAffiniti, our communications integration business. In the year ended 30 June 2006, Smart421 reported turnover of £11.1 million(2005: £8.9 million) and profit before tax of £1.5 million (2005: £0.3 million).As at that date, the business had gross assets of £6.6 million, including a cashand cash equivalents balance of £3.4 million. On present performance, theacquisition will be immediately earnings accretive. Commenting on the acquisition, Malcolm Fallen, Chief Executive of KingstonCommunications, said: "The acquisition of Smart421 provides an excitingopportunity for Kingston. The business has an outstanding reputation in theapplications integration marketplace, offering a high quality service to itscustomers. The Group will benefit from the immediate extension ofapplication-related skills, particularly through Smart421's Microsoft and IBMcapabilities." ENDS For further information, please contact: Kingston Communications (HULL) PLC Corporate Communications Anita Pace Tel: 01482 602666 Mobile: 07770 744322 The Maitland Consultancy Colin Browne Tel: 020 7379 5151 Mobile: 07733 103800 Note to editors About Kingston Communications Kingston Communications is a leading provider of communications. Ourcapabilities are built on the solid experience gained in our heartland in EastYorkshire, where we have been providing leading edge residential and businessservices for 100 years. Today, we also offer a wide range of voice, data and internet services tobusinesses across the UK as well as outsourced contact centre services. Usingour own network infrastructure, we deliver reliable, cost effective connectionsfor our customers. By listening and working closely with them, we use ourexperience and expertise to help companies serve their own customers aseffectively as possible. Kingston Communications is a member of the TechMark exchange. For further details on Kingston Communications, please visit our website atwww.kcom.com About Smart421 www.smart421.com Smart421 is a managed services and integration specialist, providing outsourcedIT services for mid-market and enterprise organisations in both the public andprivate sectors. Smart421 focuses on three key solution areas: Managed Services, Integration andInnovation, delivered using a unique onshore/offshore service structure. Thisallows Smart421 to combine onshore project management and expertise withoffshore development and technical services, to deliver a rare combination ofinnovation, excellent customer service and demonstrable cost savings. Smart421 maintains good relationships with its technology partners to sustainits specialist technology skills and deliver expertise and scale. Smart421 hasclose associations with Indian based organisation Tech Mahindra and is an IBMPremier and Tier One WebSphere Services, a Microsoft Gold and an Oracle Partner. Founded in 2000 and headquartered in Ipswich, UK, Smart421 has over 130employees. Smart421 values the long term relationships built with some ofEurope's largest organisations and its customer base includes Norwich Union, UPCBroadband, O2 and E.ON. This information is provided by RNS The company news service from the London Stock Exchange