Acquisition

21 Feb 2008 07:00

Statpro Group PLC21 February 2008 For release at 07.00 a.m. Thursday, 21 February 2008 STATPRO GROUP PLC ("StatPro", the "Company" or the "Group") Acquisition Highlights: £€7 million acquisition of Performa, provider of software to asset managers €25 client contracts with recurring annualised revenue of £2.1 million •Value of recurring annualised contracts for Group now over £22 million •Strong cross-selling opportunities to largely UK blue-chip client base •Earnings enhancing in 2008 •Product market drivers are GIPS and MiFID IntroductionIn line with its strategy of acquiring complementary businesses andconsolidating the sector, StatPro, the AIM listed provider of portfolioanalytics and data solutions for the global asset management industry, ispleased to announce the completion on 20 February 2008 of the acquisition ofPerforma Consultants UK Limited ("Performa"), a supplier of software solutionsto asset managers for complying with Global Investment Performance Standards(GIPS(R)). StatPro is acquiring 100 per cent of Performa for a consideration (beforeexpenses) of £7.0 million. The consideration will be increased by the value ofPerforma's net current assets at completion above an agreed minimum level,currently estimated to be approximately £0.8 million. The total considerationwill be satisfied by a combination of £6.6 million in cash and the issue to thevendors of 1,372,020 ordinary shares of 1p each at an effective price of 86.6pbased on the average closing mid-price of StatPro's ordinary shares for the tenday trading period prior to the date of completion. The cash element of theconsideration is being financed by an increase to a total of £22.5 million incommitted banking facilities from the Group's existing bankers. The Board is expecting the acquisition of Performa to be earnings enhancing in2008. Background to and reasons for the acquisition StatPro's strategy is to grow its product offerings and global reach. Theacquisition of Performa brings new clients and a highly professional team, whichwill strengthen our product and service offering globally. Each of Performa'sclients represents significant cross-selling opportunities for StatPro's broadrange of products. Performa was established by Anthony Howland and Dean Brown in 1999 to help assetmanagers meet the challenges of compliance with the Global InvestmentPerformance Standards (GIPS(R)). Performa has 19 employees located in its Londonoffice. Anthony Howland has agreed to remain as a consultant and Dean Brown willbecome a director of StatPro Limited. Performa now has 25 largely blue-chip clients based in the UK, Europe and NorthAmerica. In the year ended 31 May 2007, Performa reported revenue of £1.66million, an increase of 17% from the previous year, profit before tax of £0.58million compared to £0.42 million in the previous year, and an operating marginincreasing to 33.3 per cent. from 29.0 per cent. As at 31 May 2007 Performa hadnet assets of £0.96 million. Performa has grown its business in its currentfinancial year and now has client contracts with a recurring annualised contractvalue of £2.1 million. StatPro has an established track record of identifying and acquiringentrepreneurial 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 ten acquisitionssince March 2000 and expects to derive operational synergies from theacquisition of Performa consistent with the successful integration of all thesebusinesses. Application will be made for the admission of the 1,372,020 ordinary shares totrading on AIM. The new shares rank pari passu with StatPro's existing issuedordinary shares and dealings are expected to commence on 27 February 2008. Following Admission, the Company's enlarged issued share capital will comprise54,486,354 ordinary shares with voting rights. The Company does not hold anyshares in treasury. This figure of 54,486,354 ordinary shares may be used byshareholders in the Company as the denominator for the calculations by whichthey will determine if they are required to notify their interest in, or achange in their interest in, the share capital of the Company under the FSA'sDisclosure and Transparency Rules. Preliminary results As confirmed in the year end trading update issued on 18 January 2008, theCompany expects to report its preliminary results for the year ended 31 December2007 on Monday, 10 March 2008. As indicated in the update, trading for the yearwas in line with market expectations and significantly ahead of 2006. Commenting on the acquisition, Justin Wheatley, Chief Executive of StatProGroup, said: "The team at Performa has built a strong profitable businessfocussed on delivering excellent value to clients. The combination of StatProand Performa, both of whom have first class reputations for service, will be astrong force in the global composites market at a time when there isconsiderably more focus on reporting and compliance with regulations such asGIPS (R) and MiFID." Commenting on the acquisition, Dean Brown, CEO of Performa, said: "StatPro'sglobal coverage is an excellent fit with Performa's specialist products andstaff. The additional products that StatPro provide, along with their globalsupport structure, will enhance our overall offering and service to our existingand potential customers." - Ends - For further information, please contact: StatPro Group plcJustin Wheatley, Chief Executive 020 8410 9876Andrew Fabian, Finance Director Arbuthnot Securities LimitedTom Griffiths/Alasdair Younie 020 7012 2000 SmithfieldReg Hoare/Tania Wild 020 7360 4900 Notes to Editors: StatPro Group plc is a leading provider of portfolio analytics and datasolutions for the global asset management industry. StatPro floated on theLondon Stock Exchange in May 2000 and transferred its listing in June 2003 toAIM. Through a combination of organic growth and by acquisitions, StatPro hasgrown its repeat annualised revenue from less than £1 million in 1999 to over£22 million today. This information is provided by RNS The company news service from the London Stock Exchange