Marwyn Management Partners PLC : Advanced Computer Software Group Plc - Acquisition Of Fabric Technologies

Advanced Computer Software Group plc - Acquisition of 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.  

Acquisition highlights

·      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

Fabric

·      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."

Enquiries

Advanced Computer Software Group plc	[phone]
Vin Murria, Chief Executive Officer
Barbara Firth, Chief Financial Officer
College Hill	[phone]
Adrian Duffield/Jon Davies
Singer Capital Markets Shaun Dobson	[phone]
Mirabaud Securities	[phone]
Rory Scott

Note to editors

Advanced Computer Software Group plc ("Advanced or the "Group") is a leading supplier of software and IT services to both public and private sectors which assist organisations to improve efficiency and reduce costs.

The Group operates as three divisions:

Advanced Health & Care sells a range of products to the NHS and private healthcare sector including patient workflow management for urgent and unplanned care providers; patient case management for social care providers; mobile applications for care in the community providers and rostering applications for social care settings.

Advanced Business Solutions provides accounting, payroll, HR and document management solutions to local authorities, healthcare organisations and private sector businesses including banks, manufacturers, retailers, charities and travel companies.

Advanced 365 delivers managed services to support Group products and to a wide range of customers including banks and financial institutions, membership bodies and healthcare organisations.  Services can be delivered either on-premise or as cloud-based models depending on customers' requirements.