Approach to Acquire SiRViS IT

13 Dec 2006 15:49

SiRViS IT PLC13 December 2006 SiRViS IT plc Approach to acquire SiRViS IT plc Date: 13 December 2006 SiRViS IT plc ("SiRViS IT" or the "Company") announced on 11 December 2006 thatit is in receipt of an approach from K3 Business Technology Group PLC ("K3") toacquire the Company subject to certain pre-conditions and assumptions. Following the announcement of this approach, the Company's trading subsidiary,Linetex Computers has received notice from a major customer, which accounted for£0.87 million (10.9%) of total turnover for the year to 31 May 2006, that shouldthe offer by K3 proceed and become unconditional in all respects it wouldterminate the Service Contract with Linetex Computers in accordance with the "change of control" provisions in their agreement. The approach from K3 is subject to pre-conditions and principal assumptions thatinclude: 1. there being no material adverse change in the business, financial or trading position of SiRViS IT; 2. SiRViS IT being on track to meet market expectations for the year ending 31 May 2007; and 3. there are no issues arising or material impact on SiRViS IT's financial performance, from change of control clauses in any existing contracts. In light of the notification mentioned above, there can be no certainty thatthese pre-conditions and principal assumptions will be met. Accordingly this new information is drawn to the attention of the Company'sshareholders as it may have a bearing on both the likelihood of K3 announcing afirm intention to make an offer at all or on the terms including price outlinedin the approach and how shareholders choose to vote at the Company's forthcomingEGM. The announcement was made with the approval of the Board of the Company, but wasnot made with the agreement or approval of K3. There can also be no certaintythat an offer will be made nor as to the terms on which any offer might be made. Further announcements will be made in due course. Enquiries: Peter Addison 07831 107850 SiRViS IT plc Chairman John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Updates on the Company's activities are regularly posted on its websitewww.sirvisit.co.uk This information is provided by RNS The company news service from the London Stock Exchange