Acquisition - Replacement
03 May 2001 - 10:29PM
UK Regulatory
RNS Number:0721D
Advance Visual Communications PLC
3 May 2001
This announcement replaces RNS no 0620D released at 10:54, 3 May 2001
The text contained track changes. There are no material changes to the
announcement.
3 May 2001
Advance Visual Communications plc
acquires Click Online in Berlin
Highlights
* Advance Visual Communications plc continues European expansion through
acquisition of Berlin-based Internet consultancy, Click Online
* Click Online's unaudited accounts for year ended 31st December 2000
indicate turnover of GBP 275,000 and profits of GBP 33,000.
* Acquisition to be initially satisfied by the issue of six million new
Ordinary shares of Advance. At Advance's Wednesday's closing price of 3.5p
per share, it represents a multiple of 0.76 of Click Online's trailing 12
months sales.
* Additional issue of two Million Ordinary shares of Advance to be made if
Click Online exceeds sales targets of GBP 600,000 within the first 9
months post acquisition.
* Acquisition provides entry into fast growing German market. Advance
Visual Communications now present in Europe's three largest technology
services markets: UK, France and Germany as well as Switzerland
* Synergies support Group's pioneering centralised production structure
* Advance Visual Communications plc now operates from four sales locations
and two production centres offering Europe wide reach.
Advance Visual Communications plc, ("Advance" or the "Company"), the
AIM listed Internet Professional Services (IPS) provider, announces
today that it has purchased Berlin based Click Online in an all paper
transaction.
Click Online has been acquired for GBP 210,000 to be satisfied by way
of issue of 6,000,000 new Ordinary shares at Wednesday's closing price
of 3.5 p per new share. In addition, there is a deferred consideration
of 2,000,000 new Ordinary shares if sales exceed GBP 600,000 within
the first 9 months post acquisition. If the target is met and based on
Wednesday's closing price of 3.5 p for Advance's shares, the total
acquisition consideration of eight million shares would translate into
a maximum multiple of 0.47 times of the required nine month's sales.
Advance's distinctive operational structure is designed to offer
operational efficiencies and higher margins through centralised
production facilities and localised sales offices. This highly
scaleable operational structure fits with Click Online's model of
outsourcing production. Integration will be efficient and redundancy
free as previously outsourced production work will now be handled by
Advance's strong Internet and wireless production centre in Sophia
Antipolis, South of France.
Massoud Amiri, Chief Executive, Advance Visual Communications, said:
"We are pleased to welcome the Click Online team to Advance. They open
the lucrative German market to us. Their focus on internet consulting
and sales is a perfect compliment with our strong centralised
production capability. Click Online bring us new blue chip clients
such as Alba and Scout 24 while enabling us to accelerate the growth
of our customer base. We are also delighted to be in Berlin, one of
Europe's fastest growing cities which is becoming the centre of German
government and business. This is another step forward in the
implementation of the pan European Buy and Build strategy which we
presented to the market at floatation.."
- ends -
About Click Online
www.click-online.de
Click Online is an Internet Professional Services business founded in
1998. It has six multi-lingual consultants and account managers with a
strong blue chip client base which includes Alba AG and Scout 24.
Click Online also brings some impressive wireless technology skills,
an area which is seeing increasing demand in Germany. Unaudited
accounts for the fiscal year ended 31st December 2000 show the company
made a profit of GBP 33,000 based on a turnover of GBP 275,000.
About Advance
www.advancevisual.com
Advance Visual Communications plc was admitted to the Alternative
Investment Market (AIM) part of the London Stock Exchange in November
2000 and trades under the stock symbol ACV. It aims to create a
leading pan-European Internet Professional Services (IPS) company
through a combination of acquisition and organic growth and currently
has operations across the UK, Switzerland and France. Advance
specialises in three core areas; eProcesses, eServices and eMarketing,
through which it helps companies harness the Internet to enhance
margins and bring their businesses closer to their customers,
suppliers and channels. Advance also provides a complete range of
Multimedia and Digital Video solutions.
For further information:
Massoud Amiri, Chief Executive
Advance Visual Communications plc 020 7830 9741
David Rydell/Billy Clegg
Bell Pottinger Financial 020 7353 9203
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