StatPro Regulatory News (SOG)

18 Apr 2006 07:01

Statpro Group PLC18 April 2006 For release at 07.00 a.m. Tuesday, 18 April 2006 STATPRO GROUP PLC ("StatPro" or the "Group") Acquisition Highlights: • Acquisition of ALPHAI, Australia's leading performance measurement software business • 14 client contracts for ASP performance solution • Extends operations and client base into Australian market Introduction In line with its strategy to acquire a complementary multi-product offering andits growth plans, StatPro, the AIM listed provider of portfolio analyticssolutions for the global asset management industry, is pleased to announce thecompletion on 13 April 2006 of the acquisition of Alphai Pty Limited ("ALPHAI"),an Australian based supplier of performance measurement software solutions toasset managers globally. StatPro is acquiring 100 per cent of ALPHAI for an initial consideration (beforeexpenses) of A$3.25 million (approximately £1.36 million) and a deferredconsideration, based on a multiple of revenue generated by the product acquiredand the incremental revenues generated in the Australian market. The initialconsideration comprises 1 million ordinary shares issued at 77 pence per shareand A$1.41 million (approximately £0.59 million) in cash on completion. Theconsideration will be increased by the net assets as at 31 March 2006, estimatedat A$0.2 million (approximately £0.08 million). The deferred consideration will be payable in cash based on a multiple of 0.5times the recurring revenue generated by the product acquired and theincremental revenues generated in the Australian market per annum for each ofthe three years ending 30 April 2009. The total consideration is capped at A$15million. The Board is expecting the acquisition of ALPHAI to be earnings enhancing in2006. Background to and reasons for the acquisition StatPro's strategy is to grow its product offerings and global reach. Theacquisition of ALPHAI brings an application service provider ("ASP") performanceproduct which will strengthen our product offering globally. The ability tooffer an ASP solution (a web based solution offered as a managed service) isbecoming increasingly important as an alternative service offering in theexpanding market for performance and analytics solutions. Furthermore, byacquiring an established Australian customer base and a physical presence inSydney, the Enlarged Group will be able to serve the Australian market with thewider StatPro suite of portfolio analytics and enhance StatPro's strategic rolein the industry. ALPHAI was established by Bruce Graham and Margaret Rennie, who developed itsASP product, Max. ALPHAI now has 14 clients based in Australia, North Americaand Europe and reported revenue of A$1.2 million (approximately £0.5 million)for the year ended 30 June 2005. Profit before tax amounted to A$0.32 million(approximately £0.13 million) in the year ended 30 June 2005 compared to aprofit before tax of A$0.19 million (approximately £0.08 million) in theprevious year. ALPHAI's trading for the nine months ended 31 March 2006 isencouraging with an increase in the profit before tax compared to the sameperiod in the previous year. ALPHAI has four employees located in its Sydneyoffice, who will be integrated within the Group. Bruce Graham will becomeManaging Director for StatPro in Australia. ALPHAI also employs a senior salesdirector, Rick Bernier, based in the US. As a result of this acquisition, Rickwill assume the position of sales director for StatPro Inc and will help driveour growth in the North American market. Professor Andrew Colin, StatPro's FixedIncome Research Director, will also be actively supporting the Group's growthplans as part of the enlarged Australian operations. StatPro has an established track record of identifying and acquiring smallentrepreneurial businesses which have excellent products and technical skills.By combining these successful entrepreneurial teams into the expanding StatProglobal distribution network, and providing the investment and support to takethe products to the next stage of development, the Group has been able togenerate enhanced shareholder value. StatPro has now completed six acquisitionssince March 2000. Application has been made for the admission of the 1,000,000 ordinary shares totrading on AIM. The new shares will rank pari passu with StatPro's existingordinary shares and dealings are expected to commence on 21 April 2006. The Group plans to provide a trading update at its Annual General Meeting to beheld at 6.00 pm on 17 May 2006. Commenting on the transaction Justin Wheatley, Chief Executive of StatPro Group,said: "This is a very exciting opportunity to expand our product offering,acquire 14 more client relationships and a base in Australia and we areconfident that the acquisition of ALPHAI will be a success and earningsenhancing." Commenting on the transaction Bruce Graham, MD of Alphai, said: "The combinationof StatPro and ALPHAI will be a compelling force in the investment performanceand attribution market. StatPro's global coverage and proven technical expertiseis an excellent fit with ALPHAI's specialist products and staff. This dealsecures the continued development of the MAX software whilst expanding ourresource and support base for existing and potential customers." - Ends - For further information, please contact: StatPro Group plcJustin Wheatley, Chief Executive 020 8410 9876Andrew Fabian, Finance Director Arbuthnot Securities LimitedTom Griffiths/Neil Kirton 020 7012 2000 SmithfieldReg Hoare 020 7360 4900 Notes to Editors: StatPro Group plc is a leading provider of portfolio analyticssolutions for the global asset management industry. StatPro floated on theLondon Stock Exchange in May 2000 and transferred its listing in June 2003 toAIM. StatPro has grown its revenue from continuing operations from £1.8 millionin 1999 to £10.8 million in 2005. Alphai Pty Limited is a software reporting development and marketing companybased in Sydney, with revenue of approximately £0.5 million in the year ended 30June 2005 and is a leading supplier of ASP performance measurement solutions toasset managers globally. This information is provided by RNS The company news service from the London Stock Exchange