Acquisition

7 Apr 2008 07:01

Manpower Software PLC07 April 2008 MANPOWER SOFTWARE PLC ("the Company") ACQUISITION ANNOUNCEMENT 7 April 2008 Manpower Software plc is pleased to announce the acquisition of Key IT SystemsLimited ("Key IT"), the market leader in the provision of software solutions forthe management of temporary staff (otherwise known as "bank staff") in the NHSfor an initial consideration of £375,000 in cash. Deferred consideration of upto a further £455,000, to be paid in ordinary shares in the Company (such sharesto be issued at the closing mid-market price of the Company's ordinary shares asat 4 April 2008, which was 53.5 pence per ordinary share), will be payabledependent upon the level of support contract renewals in 2008 and 2009. The acquisition of Key IT enables Manpower Software to offer a fully integratede-rostering and bank staffing solution to Key IT's customers, where the Companywill be represented in more than 90 additional NHS Trusts. Key IT's unaudited profit before tax for the year ended 31 January 2008, asreported by management, was £50,682. Further, the vendors of Key IT havewarranted that the net assets of Key IT at completion will be not less than£29,395, which figure excludes any value attributable to capitalised researchand development costs. The Directors believe the acquisition will be earnings enhancing in the firstfull year of ownership, before any amortisation of intangible assets orimpairment review of goodwill. Ian Bowles, CEO of Manpower Software plc, said: "Our business strategy for the Healthcare sector is to be the leading supplierof workforce optimisation solutions to the UK NHS and broader healthcaremarkets. The acquisition of Key IT considerably strengthens our position andmoves us closer to the accomplishment of that goal. The combined strength ofthe two businesses will bring real benefit to all our NHS and healthcarecustomers, and we look forward to demonstrating our continued commitment to thehealthcare industry over the coming months." Enquiries: Manpower Software plc Simon Thorne, Chief Financial Officer 020 7389 9500 Numis Securities Michael MeadeJames Black 020 7260 1000 This information is provided by RNS The company news service from the London Stock Exchange