The functionality of the new solution surpassed our current business demands and had the capacity and flexibility to manage our future requirements.

Downloads
Download White Papers

Sanderson Announce Second Acquisition

Sanderson Group plc: Second Acquisition Since Flotation

Sanderson Group plc (‘Sanderson’), an established provider of software and IT services to UK commercial markets, today announces the acquisition of Megabyte Limited (‘Megabyte’), for up to £1.5 million in cash and 2 million Sanderson shares.

Based in Bradford, West Yorkshire and Swanmore in Hampshire, Megabyte is a well established provider of solutions to the retail sector. Mr David Sanders has led the company since 1984 and following the acquisition he will become Managing Director of the business within Sanderson. Megabyte owns the intellectual property rights to software which provides front and back office electronic point of sale systems together with a full range of support services. The company currently employs 66 people and has over 100 customers across the UK and Ireland.

The total initial consideration for the acquisition is £1 million in cash plus the issue of 1 million ordinary Sanderson shares (the ‘Consideration Shares’). The Consideration Shares are valued at £495,000 based on the average closing mid market price of 49.5 pence over the ten business days preceding 23rd February 2006. The Consideration Shares will be subject to a twelve month period during which they may only be disposed of with the prior consent of Sanderson. An application will be made to the London Stock Exchange for the Consideration Shares to be admitted to AIM.

Up to £500,000 of additional cash consideration and a further 1 million shares may be payable dependent upon the achievement of performance targets by Megabyte for a period ending not later than 30th September 2008.

For the twelve months ended 30th June 2005, Megabyte achieved turnover of £3.79 million* (2004: £3.92 million) and profit before interest and tax of £23,602* (2004: £183,982). Gross assets were £2.1 million at 30th June 2005 (2004: £2.35 million). Sanderson expects the acquisition to be earnings neutral in the current financial year and earnings enhancing thereafter.

Commenting on the acquisition, David O’Byrne, Managing Director of Sanderson, said: “We are delighted to welcome David Sanders and his team to the Sanderson Group. This acquisition will significantly extend our product offerings in the growing multi-channel Retail market, and will provide good cross-selling opportunities with our existing Mail Order, Retail and Distribution operations. We are confident that the business will provide a significant contribution to Sanderson in the future as well as providing new revenue streams and greater market opportunities”.

* unaudited accounts

Enquiries:

Sanderson – David O’Byrne, Managing Director
01709 787787

Sanderson – Christopher Winn, Chairman
02476 555466

Multi-channel sales solutions
Delivering results

Manufacturing solutions.
Achieving competitive advantage

Get in touch
Email Sanderson,
request a call back
or call us on
024 7655 5466.