Acquisition
03 September 2001 - 5:01PM
UK Regulatory
RNS Number:3298J
Advance Visual Communications PLC
3 September 2001
3 September 2001
Advance Visual Communications plc
acquires XOO LTD in london
Highlights
* Advance Visual Communications plc adds to European presence with the
acquisition of London based New Media Consultancy, xoo Ltd (pronounced
zoo).
* Xoo's unaudited accounts for year ended 30 April 2001 indicate turnover
of GBP 379,000 and a loss of GBP 11,000
* The acquisition will be satisfied initially through the issue of 4.75
million new ordinary shares of Advance or GBP 130,000 at Advance's closing
price of 2.75 p. This represents an initial multiple of 0.34 of xoo's
trailing 12 months sales.
* Additional consideration will be issued if xoo achieves certain sales
targets during the first year post acquisition. The maximum potential
additional consideration is 4.75 million shares of Advance upon achieving
sales of GBP 1,200,000.
* Acquisition strengthens Advance's position as a leading European
Internet Professional Services provider and provides additional consulting
capacity in lucrative UK market.
* Synergies support the Group's pioneering centralised production
structure
* Advance Visual Communications plc now operates from six 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 London based xoo Ltd in an all paper
transaction.
Xoo has been acquired for GBP 130,000 to be satisfied by way of issue
of 4,750,000 new Ordinary shares at Thursday's closing price of 2.75p
per new Ordinary share. In addition, there is a deferred consideration
of up to 4,750,000 new Ordinary shares if sales exceed GBP 1,200,000
within the first year post acquisition.
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 xoo'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 Officer, Advance Visual Communications,
said:
"This acquisition has added a strong set of clients to our already
expanding customer base, including Fantasy League, Traderserve, Camden
Borough Council and Tencel. We are pleased to welcome the xoo team to
Advance, their experience and focus on consulting will take advantage
of the strong leads pipeline that Advance has built. Xoo, coupled with
our five other sales offices and two production centres, has made us
firmly established in Europe's three largest technology services
markets: UK, France, Germany as well as our presence in Switzerland."
"We do not anticipate any further acquisitions in the near future. Our
primary objective is rapid revenue growth from our six sales offices,
which will be a significant improvement over the two main sales
offices that generated the bulk of our business in the last fiscal
year. Furthermore, due to numerous cost cutting initiatives, Advance
has significantly fewer employees despite tripling the number of our
sales offices. We have become much more efficient."
- ends -
About Xoo Ltd
www.xoo.co.uk
Xoo is a Internet consultancy founded in 1998. Following a
restructuring early this year, the team was reduced from 14 at its
peak to a core team of 5 concentrating on the consulting side of the
business. The group also boasts proven wireless capability. xoo has
worked with diverse and prestigious clients including British Airways,
Poptones, Camden Borough Council, Tencel and Traderserve. xoo
outsourced most of of their production until now. Unaudited accounts
for the fiscal year ended 30 April 2001 show the company made a loss
of GBP11,000 based on turnover of GBP 379,000.
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. Advance
currently has five sales and consultancy operations across the UK,
France, Germany and Switzerland. In contrast, the company's production
facilities are centralised in two locations, Sophia Antipolis, South
of France, for Internet and wireless developments and in Bradford, UK,
for Digital Video and Multimedia productions. Advance specialises in
helping companies harness the Internet to enhance margins and bring
their businesses closer to their customers, suppliers and channels.
The company also provides a complete range of Multimedia and Digital
Video solutions.
For further information:
Massoud Amiri, Chief Executive Officer
Advance Visual Communications plc 020 7830 9740
Billy Clegg/Charlotte Fisher
Bell Pottinger Financial 0207 353 9203
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