Rm Regulatory News (RM.)

21 May 2007 07:01

RM PLC21 May 2007 21 May 2006 RM acquires specialist education resources provider DACTA ltd RM announces the acquisition of DACTA ltd for a consideration of up to£3.99million. DACTA supplies branded learning products to educationalestablishments through a Europe-wide network of dealers. The acquisition furtherenhances RM's Education Resources business; broadens the range of products RMprovides to existing customers; and provides RM with an education dealer channelin mainland Europe. DACTA is the European distributor for LEGO Education. LEGO is a well respectedbrand, with a long and successful history of developing learning resources forchildren. These include control and technology products, which are widely usedby schools throughout Europe. The DACTA management team has been involved indeveloping LEGO's education strategy for many years, originally working directlyfor LEGO and more recently as part of the independent business DACTA. DACTAholds the exclusive distribution rights for LEGO Education products in the UKand 16 other European countries. DACTA also holds the European distribution rights for TOLO Education productsand is creating a range of educational materials that enable these products tobe used to support teaching and learning in schools. This is part of a broaderstrategy of working closely with owners of high quality branded children'sproducts and supporting their access to the educational market Following the acquisition, DACTA will be managed as a separate entity within theRM Group with its own product development, sales & marketing and distributionactivities, whilst benefiting from the financial and operational support of theRM Group. DACTA's revenue in the year to 31 December 2006 was £6.5m, with operating profitof £570k. RM is paying an initial cash consideration of £2.28m; further cashconsideration of up to £1.71m is payable in 2010, conditional on the Directorsremaining with the business and achieving certain growth and performancetargets. Commenting on the acquisition, Tim Pearson, CEO of RM, said: "DACTA is a great addition to RM's Education Resources business. It's awell-managed and profitable business, providing educational technology productsthat are widely and enthusiastically used by the educational ICT community.Equally importantly, the DACTA team shares RM's values and have achieved theirsuccess through a passionate commitment to delivering educational value." Graham Farrow, Managing Director of DACTA, added: "Over the last two and a half years DACTA has achieved substantial growth, bothin revenue and profit. However, achieving the next stage of growth - with LEGOand with our other brand partners - will require a level of investment andmanagement support beyond that we could manage on our own. With RM we can growas part of a group that shares the educational values of both ourselves and ofLEGO, allowing us to retain the approach that has made DACTA successful." For further information, please contact:Mike Greig/Phil Hemmings, RM plc 08450 700300Mark Antelme/Raphael Mazet, Brunswick 020 7404 5959 Notes: Founded in 1973, the RM Group is a leading provider of educational products andservices to schools, colleges & universities, local government, and centralgovernment education departments & agencies. RM works closely witheducationalists to create new products, processes and technology which improveteaching and learning. RM is listed on the main market of the London StockExchange under the symbol RM.L. DACTA was founded in 2004 as a specialist education distributor for LEGO. Itoperates through a Europe-wide network of specialist dealers, employs 14 peopleand operates from premises near Wrexham. DACTA was shortlised in four categoriesin the 2007 Education Resources Awards, the UK's national awards for excellenceeducational resources and materials. The two Directors who comprise DACTA's management team are both former employeesof LEGO, having worked there in senior positions for 12 and 20 yearsrespectively. They left LEGO to form DACTA in 2004 with the aim of creating animproved educational focus for LEGO's products in Europe and extending theireducation development skills to other internationally-known, branded children's'products. This information is provided by RNS The company news service from the London Stock Exchange