Acquisition

28 Jan 2005 09:49

Stream Group PLC28 January 2005 Stream Group plc ('Stream' or 'the Group') Stream Buys MChex and Joins mobileATM(TM) initiative in m-Banking Stream Group Plc, the mobile applications and content enabler, has furtherestablished its position at the cutting edge of the mobile sector with theacquisition of MChex Holdings Limited and MChex Limited ("MChex") from MorsePlc, the technology integrator, for a maximum total consideration of £1.5m, andthe announcement of an exclusive contract with mobileATMTM. The MChex platform, designed and built by Morse, is a carrier-grade provider ofmobile data and SMS services and, through the purchase, Stream gains directconnections to all five UK mobile telephony networks, giving it increasedcontrol and much improved margins on its own mobile traffic. Ownership of MChexwill also allow Stream to sell SMS aggregation services to third parties. In addition, MChex has been awarded a contract to be the exclusive provider ofwholesale consumer message delivery and billing services to mobileATMTM.mobileATMTM is a joint venture between Morse and LINK, the organisation thatmanages the UK's ATM network. mobileATMTM uses LINK's existing technology toreplicate some of the functionality of a cash machine directly on a mobilephone, initially allowing customers to check their bank balances and top up prepaid mobile handsets. New banking services will be added during 2005. Gordon Robson, Executive Chairman of Stream, commented: "This is Stream's first acquisition and marks a significant step in movingStream towards its goal of becoming an integral part of the global mobilemarketplace. The mobilisation of banking services marks an incredibly importantmoment for the mobile industry and Stream is now in an excellent position tocapitalise upon this. The future opportunities for the global development ofmobileATMTM are immense." Alastair Lukies, Business Development Director of mobileATMTM, commented: "Stream has been leading their field in delivering consumer services over theMobile Channel for some time now. The combined expertise of LINK, Morse andStream will create a formidable force in the emerging global mobile bankingworld." Note for Editors: The initial cash consideration for MChex is £267,197 together with a debtsettlement of £482,803 funded from the Group's own cash resources. A maximumdeferred consideration of £750,000 is payable, in cash, subject to the launch ofadditional services on or before 30th September 2005. In the period from 8January 2003 to June 2004, MChex incurred losses (before tax) of £874,018 andhad net liabilities of £872,818 as at that date. END Enquiries: Stream Group plcGordon Robson, Executive Chairman Tel: 020 7725 0300Pat Greene, Finance Director mobileATM LimitedAlastair Lukies, Business Development Director Tel: 020 8380 8257 Flagship GroupAndy Field Tel: 020 7886 8442 This information is provided by RNS The company news service from the London Stock Exchange