Science Group Regulatory News (SAG)

Sagentia Group plc

("Sagentia" or "Company" or "Group")

Acquisition of Oakland Innovation Limited

Notice of Preliminary Results

Sagentia Group plc (AIM:SAG) has acquired the entire share capital of Oakland Innovation Limited ("Oakland"), an R&D consultancy specialising in technology innovation and market intelligence for the global consumer and healthcare markets.

Founded in 1989 by Managing Director, Michael Zeitlyn, Cambridge-based Oakland employs 47 staff, of which approximately two-thirds are PhD qualified. Michael Zeitlyn, and Jennifer Brown, Sales Director and shareholder, will remain with the business. Oakland will be integrated into Sagentia's Technology Advisory Division.

In the year to 31 December 2014, Oakland generated revenue of approximately £3.9 million and profit before tax of approximately £0.7 million. Net assets at completion were approximately £0.5 million including £0.7 million in cash. These figures are all unaudited. The total cash consideration of £5.0 million will be satisfied as to £3.6 million in cash on completion (payable out of Sagentia's existing cash resources) and as to £1.4 million satisfied by the sale of Sagentia's treasury shares, equivalent to 1,043,333 Sagentia shares at the average closing mid-market price of 130.7 pence on the five dealing days immediately prior to completion. The Sagentia shares are subject to lock-in periods of between 18 months and three years. There is no deferred consideration.

The total number of ordinary shares in issue (excluding treasury shares) following this announcement is 38,379,948. Sagentia holds 3,682,087 shares in treasury. Following this announcement the directors of Sagentia Group plc have interests in the ordinary shares of the Company as follows:

The Group's Preliminary Results for the period ended 31 December 2014 are anticipated to be released on Wednesday, 4 March 2015. Following the announcement on 23 January, the Board has consulted with a number of major shareholders regarding the application of the Group's significant cash resources. As a result, it is apparent that a tender offer at a price that the Board could recommend, based on the Company's share price over the past six months, would be unlikely to receive sufficient acceptances to warrant the cost that would be incurred. The Board appreciate this strong shareholder support and will therefore provide an update on alternative proposals at the time of the Preliminary Results.

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