Acquisition of Web Genie Internet Limited (trading as NicNames)
and placing of new shares to raise £0.8 million
iomart Group plc ("iomart" or "the Company") today announces that it has
acquired, through its 75% owned subsidiary, iomart Internet Limited, the entire
share capital of Web Genie Internet Limited ("NicNames") for a total
consideration of £437,504 in cash. Of this consideration, £275,000 will be
payable on completion with the balance being payable in 24 monthly instalments
NicNames is a web hosting and domain registration business with a customer base
of over 14,000 customers and 40,000 registered domains. Based on NicNames’
unaudited management accounts for the 12 months ended 31 May 2003, the company
generated revenue of £850,000 and a pre tax loss of £25,000. Net assets as at
completion are expected to be £17,000, including £150,000 cash at bank.
The acquisition of NicNames substantially increases iomart’s customer base and
will provide opportunities to sell the Company’s other products to existing
NicNames customers. It is also anticipated that significant reductions in
NicNames’ cost base can be achieved by merging its operations with iomart’s.
The Company also announces that 5,379,500 new ordinary shares of 1p each have
been conditionally placed with institutional investors at a price of 15 pence
per share, representing a discount of approximately 6.25 per cent. to the
previous day’s closing share price of 16 pence per share. Once completed, the
placing will raise approximately £778,000 net of expenses for the Company.
This placing has been undertaken to satisfy institutional demand for equity. The
proceeds raised will be used to fund the acquisition of NicNames and for general
working capital purposes, thereby supplementing iomart’s net cash balances of
approximately £3,400,000 (as at 21 July 2003) for continuing the roll out of
NetIntelligence as well as for making other acquisitions as and when
These 5,379,500 new ordinary shares of 1 pence each will rank pari passu with
all other ordinary shares now in issue. Application for these new shares to be
admitted to trading on AIM has been made and admission is expected to occur on
28 July 2003.
The placing is conditional upon admission of the new shares becoming effective
on or before 28 July 2003 (or such later date as the Company and KBC Peel Hunt
Ltd may agree, being no later than 4 August 2003).
Following admission, the enlarged issued share capital of the Company will be
59,175,114 ordinary shares of 1p eachSubscribe to RSS Feed