First Capital advises software house AIM Group on its sale to Computer Software Group plc
Press Release, 2nd May 2006
FirstCapital, the specialist technology corporate finance house, today announces that Computer Software Group plc (LSE: CSW) has entered into an agreement to acquire British-based AIM Group Holdings Limited. First Capital acted as exclusive financial advisor to AIM Group in the transaction.
Commenting on the acquisition, Jason Purcell, Chief Executive of FirstCapital, said:
"There is a healthy appetite right now for acquiring well-positioned software and services businesses: AIM Group was no exception. The company's venture capital backing has helped it to focus on an important market and build a valuable customer base."
Vin Murria, Chief Executive of CS Group, commented:
"I am confident that AIM Group, with its strong and stable client base, will steadily grow in sales and profits within our Group structure. It will provide a sound base from which CS Group can develop a significant position in the legal sector, a niche software sector in which we intend to become a leading supplier."
With its head office in Hull, AIM Group has built up a client base, primarily within the legal sector but also in other professional services sectors, of over 400 firms whose recurring support contracts underpin approximately 51% of total annual sales. AIM Group's audited accounts to 30 April 2005 recorded a loss before tax from continuing operations of £107,000 and gross assets of £7.5 million. However, in the period since 30 April 2005 AIM Group have disposed of a profitable division of their business and consequently the loss before tax from continuing operations for the year to 30 April 2006 is expected to increase. CS Group are confident that cost savings and synergies resulting from the acquisition will result in a significant increase in the future profitability of the AIM Group.
Since its admission to AIM in August 2000, CS Group has, through organic growth and a series of acquisitions, progressively constructed three significant divisions: Business Solutions, which focuses on accounting and customer relationship management, into which AIM Group Holdings will be integrated; Field Services, which concentrates on enabling service providers to maintain contact with engineers working in the field; and Not for Profit, which focuses on software for charities, higher education and professional and governing bodies.
Following the acquisition, Jim Chase (44), who joined AIM Group in 1986, will continue in his role as Managing Director of the AIM Group legal software business unit within CS Group. All other AIM Group directors will resign.
About FirstCapital
FirstCapital is a technology corporate finance advisory firm based in London, specializing in venture capital fund raising and mergers and acquisitions advice to high growth technology companies.
Our team is experienced in executing a wide variety of deals from start-ups to multinationals and in both UK and international cross border transactions. We provide pro-active, informed, full service deal management, including assistance with strategy and planning, finding and approaching investors or M"&"A targets, valuations and hands-on transaction execution.
We work in partnership with our clients to achieve their goals, offering impartial advice and support based on our knowledge of the market and of each client's individual requirements, and sharing alongside them in the risks and the rewards of success.
For further information visit www.firstcapital.co.uk
About Computer Software Group
Computer Software Group (CS Group) has been delivering innovative business solutions for more than 30 years. With 13 offices in the UK it is a leading UK software house focusing on the development of fully-integrated solutions for British and International companies. Today CS Group helps over 2500 companies, including many market leaders, in a wide variety of industry sectors.
CS Group is listed on the London Stock Exchange (CSW).
|
