TIDMVNET
RNS Number : 6213S
Vianet Group PLC
04 October 2017
4 October 2017
Vianet Group plc
("Vianet" or the "Group")
Acquisition of the UK's leading Unattended Retail Management
Software Company
Earnings enhancing strategic acquisition in the unattended
retail market
Vianet Group plc (AIM: VNET), the international provider of
actionable data and business insight through devices connected to
its Internet of Things ("IOT") platform, is pleased to announce the
acquisition of Vendman Systems Ltd ("Vendman"), a leading
Enterprise Resource Planning ("ERP") and mobile software provider
for unattended retailing, for a total consideration (including an
earn out), of up to GBP4.25 million, payable in cash.
Vendman, which is based in Hazel Grove, Cheshire, develops,
manages, and supports integrated software and mobile applications
for the unattended retailing industry. Its solutions include stock
control, pricing information, data management, account analysis and
route planning. Vendman is UK market leader and provides management
services for over 200,000 machines in the UK and European
unattended retail markets and has a track record of growth.
Unaudited accounts for the 12 months ended 31 March 2017 recorded
revenues of GBP1.8 million, over 90% of which were recurring, and
an operating profit of GBP0.27 million with net assets of GBP0.28
million.
The initial cash consideration payable for Vendman is GBP2
million (subject to customary completion adjustments), on
completion, with an earn-out element of up to GBP2.25 million based
on the achievement of EBIT targets in the first two years. The
initial GBP2 million of consideration is to be funded by a bank
loan with a current blended rate of c. 3% and it is envisaged that
the earn-out will be funded from cash reserves.
Vendman is a highly complementary fit with Vianet's existing
business and has successfully partnered with Vianet's Smart
Machines division, where we have introduced our IOT connectivity
and contactless payment solutions to Vendman customers.
The Board believes that the Vendman acquisition has a compelling
strategic, commercial and financial rationale as it will:
-- Establish a comprehensive portfolio of market leading
solutions for unattended retail through the combination of Vianet's
existing expertise with the products and services of Vendman;
-- Create significant cross selling opportunities for the combined commercial team:
o through the sale of Vianet IOT connectivity and real time data
to Vendman customers;
o accelerates the rollout of Vianet contactless payment
technology to Vendman customers; and
o enables the sale of Vendman ERP and mobile platform to Vianet
customers
-- Unlock incremental big data revenue opportunity through
building market leading analytics and insight from combined data
sets
-- Significantly enhance route to market and distribution
opportunities across Continental Europe through establishing a
strong network and footprint
-- Enhance earnings in FY2019 the first full year of combined operations
Commenting on the acquisition, Stewart Darling, CEO of Vianet
Group plc, said:
"We are delighted to announce this significant strategic
acquisition of a valued existing partner, and we look forward to
accelerating business growth with the highly experienced and
respected Vendman team. I believe the combination of Vendman ERP
and mobile software products with Vianet IOT connectivity, data
analytics and contactless payment solutions creates an unparalleled
portfolio with strong presence in the UK and Europe. This is
positive news for both sets of customers as we continue to extend
our capability, delivering increased value to the unattended retail
sector, and in doing so accelerating our pan European growth plans.
"
James Dickson, Chairman of Vianet Group plc commented:
"This is an important acquisition which greatly advances our
strategy for growth and is a hugely complementary fit for our
business on several fronts and takes it to the next level. The fact
that Vendman has chosen to deal with Vianet is a strong endorsement
of our capability, vision and strategy for the Smart Machines
division.
As businesses increasingly seek and rely on actionable data,
business intelligence and insights, Vianet's expansion of proven
IOT capability shows that we are well placed to deliver compelling
results for our customers and accelerate our own growth in what are
rapidly evolving markets".
- Ends -
Enquiries:
Vianet Group plc
James Dickson, Chairman Tel: +44 (0) 1642
358 800
james.dickson@vianetplc.com www.vianetplc.com
Cenkos Securities plc
Stephen Keys / Camilla Hume Tel: +44 (0) 20
7397 8900
www.cenkos.com
Media enquiries:
Yellow Jersey
Sarah Hollins Tel: +44 (0)7764
sarah@yellowjerseypr.com 947 137
www.yellowjerseypr.com
About Vianet
Vianet Group is a leading provider of actionable management
information and business insight created through combining data
from our smart Internet of Things ('IOT') solutions and external
information sources.
Since Admission to AIM in 2006, the Group has grown from its
core beer monitoring business both organically and through
strategic acquisitions to widen its offering and also develop new
businesses, especially IOT connectivity devices and contactless
payment solutions particularly for the unattended retailing in the
premium coffee sector.
Servicing over 300 customers across the world and rendering live
data to our IOT platform from over 250,000 connected machines
daily, Vianet is one of the largest business to business (b2b)
connected solutions providers in Europe with established long term
relationships with blue chip customers and growing recurring
revenues which are over 85% of our total revenues.
In our Smart Machines Division we connect a single data
gathering device with its own on-board communication capability to
a customer's asset or system. The device then sends data back via
our IOT platform to cloud based servers. The technology was
originally developed for automated retailing machines, however the
flexibility and functionality of the device means the technology
can be applied to practically any machine which has the capability
to output data. The device is also used to connect our contactless
payment solution and communicate payment terms to our cloud based
payment services providers where that application is also
required.
The Smart Zones Division is where we connect multiple data
gathering devices into one or more systems or assets with the data
from those devices being communicated back to our IOT platform and
cloud based servers via a single 3G communications hub. The
technology was originally developed for flow monitoring devices,
temperature sensors, and asset management in drinks retailing but
practically any data gathering device with a digital output could
be connected to the communications hub where required such as
gaming machines, utilities management and EPOS.
For further information, please visit www.vianetplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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