3 Jun 2014 07:00
Date: | 3 June 2014 |
On behalf of: | PROACTIS Holdings PLC ("PROACTIS" the "Company" or "the Group") |
Embargoed until: | 0700hrs |
PROACTIS Holdings PLC
Completion of acquisition
Further to the announcement on 29 April 2014, PROACTIS Holdings PLC ("PROACTIS", the "Company" or "the Group), the specialist Spend Control solution provider, is pleased to announce that the acquisition of Intesource Inc ("Intesource") has completed.
As described in the announcement on 29 April 2014, 362,518 ordinary shares of 10 pence each in the capital of the Company ("Ordinary Shares") have been issued and allotted to certain key employees of Intesource to settle Intesource's bonus obligations to them. These Ordinary shares will be subject to lock-in conditions over a period of one year from completion.
Application has been made for the 362,518 new Ordinary Shares to be admitted to trading on AIM ("Admission") and dealings are expected to commence at 8.00 a.m. on 5 June 2014. The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares.
The total number of Ordinary Shares in issue following Admission will be 38,211,326. There are 63,777 Ordinary Shares held in Treasury. Accordingly, the figure of 38,147,549 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.
Rod Jones, CEO commented:
"I am very pleased to announce the completion of the Intesource acquisition. It provides the Company with increased scale, profitability and a substantial footprint in the US Market. In addition, it will bring over 25 new clients and significant scope for cross selling opportunities.
"The reverse e-auction offering, delivered as true SAAS, is complementary to the Group's current service and software suite and bolsters the Group's existing strong offering. We look forward to continuing to update the market with our progress and delivering excellent service to our customers."
Enquiries:
PROACTIS Holdings PLC | |
Rod Jones, Chief Executive Officer Tim Sykes, Chief Financial Officer
| Via Redleaf Polhill
|
Redleaf Polhill | |
Rebecca Sanders-Hewett Jenny Bahr Rachael Brown | 0207 382 4730 |
finnCap Limited Stuart Andrews Charlotte Stranner | 0207 220 0500
|
Notes to Editors:
PROACTIS creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. PROACTIS is used in over 400 organisations around the world from the commercial, public and not-for-profit sectors.
PROACTIS is head quartered in Wetherby, West Yorkshire. It develops its own software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners.
PROACTIS floated on the AIM market of the London Stock Exchange in June 2006.
CLOUD COMPUTING is defined as location-independent computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid.
Information on Intesource
Intesource is an established provider of e-auction services (using its own proprietary service delivery know-how and software platform) and has more than 25 contracted clients delivering over $4.5 million of recurring annual income profitably. The service offering was recognised by Gartner which classified Intesource as a "cool vendor" list in its report during May 2013.
The Directors believe that the Acquisition will provide further scale and profitability and offers strong opportunities to cross-sell its own complementary product suite. In addition, operational savings are expected through the consolidation of elements of its existing operations in the United States. Intesource's current e-auction service delivery know-how and the software platform significantly bolsters PROACTIS's offering, by accelerating the service offering to clients and saving forward development costs.
Customers of both PROACTIS and Intesource can look forward to the delivery of broadened services and solutions to support operations, enhance procurement effectiveness and extend collaboration with suppliers. In addition, Intesource's customers will now have access to truly "end-to-end" procurement solutions from the PROACTIS Group.
For the year ended 31 December 2013, the audited accounts of Intesource showed turnover of $5,026,000 on which it made an operating profit of $610,000. Gross assets at that date were $2,889,000.