Advanced Computer Software Group plc Acquires Fabric Technologies for £4.6m
Advanced Computer Software Group plc (AIM: "ASW", "Advanced", or "the Group"), a leading provider of healthcare and business management software and services, has acquired the entire issued share capital of London based managed services provider Fabric Technologies Limited ("Fabric" or "the Company") for a total cash consideration of £4.6m, which includes a performance related earn-out of up to £0.4m payable in October 2012.
Fabric, which provides managed services and unified communication solutions to approximately 160 UK mid-market customers in banking and other professional services sectors, will be integrated over the coming months into the Group's Advanced 365 Managed Services division based in City Road, London.
- Immediately earnings enhancing with strong recurring revenues
- Strengthens high-performing managed services division
- High quality customer base creates opportunities for cross-selling Group products
- Early synergies identified
- 95 employees, mainly London based
- Accounts for the year ended 31 December 2010 showed turnover of £11.2m, of which approximately 58% is recurring, EBITDA of £0.5m and PBT of £0.5m, with net assets of £0.6m
- Full range of outsourced managed services and implementation skills
- Market leading unified communication and collaboration solutions
Vin Murria, Chief Executive, commented:
"This earnings-enhancing acquisition forms part of the Group's strategy to identify and acquire high quality complementary businesses to strengthen its 365 Managed Services division.
"Fabric's market-leading offerings will help drive further cross-selling of managed services into the Group's 7,000 strong customer base.
"We continue to seek suitable acquisition targets for our Health & Care and Business Solutions divisions."