SND.L Regulatory News (SND)

23 Feb 2006 07:03

Sanderson Group PLC23 February 2006 For Immediate Release 23 February 2006 Sanderson Group plc: second acquisition since flotation Acquisition of retail software business for up to £2.5 million Sanderson Group plc ('Sanderson'), an established provider of software and ITservices to UK commercial markets, today announces the acquisition of MegabyteLimited ('Megabyte'), for up to £1.5 million in cash and 2 million Sandersonshares. Based in Bradford, West Yorkshire and Swanmore in Hampshire, Megabyte is a wellestablished provider of solutions to the retail sector. Mr David Sanders has ledthe company since 1984 and following the acquisition he will become ManagingDirector of the business within Sanderson. Megabyte owns the intellectualproperty rights to software which provides front and back office electronicpoint of sale systems together with a full range of support services. Thecompany currently employs 66 people and has over 100 customers across the UK andIreland. The total initial consideration for the acquisition is £1 million in cash plusthe issue of 1 million ordinary Sanderson shares (the 'Consideration Shares').The Consideration Shares are valued at £495,000 based on the average closing midmarket price of 49.5 pence over the ten business days preceding 23rd February2006. The Consideration Shares will be subject to a twelve month period duringwhich they may only be disposed of with the prior consent of Sanderson. Anapplication will be made to the London Stock Exchange for the ConsiderationShares to be admitted to AIM. Up to £500,000 of additional cash consideration and a further 1 million sharesmay be payable dependent upon the achievement of performance targets by Megabytefor a period ending not later than 30th September 2008. For the twelve months ended 30th June 2005, Megabyte achieved turnover of £3.79million* (2004: £3.92 million) and profit before interest and tax of £23,602*(2004: £183,982). Gross assets were £2.1 million at 30th June 2005 (2004: £2.35million). Sanderson expects the acquisition to be earnings neutral in thecurrent financial year and earnings enhancing thereafter. Commenting on the acquisition, David O'Byrne, Managing Director of Sanderson,said: "We are delighted to welcome David Sanders and his team to the SandersonGroup. This acquisition will significantly extend our product offerings in thegrowing multi-channel Retail market, and will provide good cross-sellingopportunities with our existing Mail Order, Retail and Distribution operations.We are confident that the business will provide a significant contribution toSanderson in the future as well as providing new revenue streams and greatermarket opportunities". * unaudited accounts Enquiries: Sanderson - David O'Byrne, Managing Director 01709 787787Sanderson - Christopher Winn, Chairman 02476 555466 Winningtons Financial - Paul Vann 07768 807631 This information is provided by RNS The company news service from the London Stock Exchange