Acquisition
March 07 2007 - 2:02AM
UK Regulatory
RNS Number:4623S
Maxima Holdings PLC
07 March 2007
Embargoed until 0700 7 March 2007
Maxima Holdings plc
("Maxima" or the "Company")
Acquisition of SevenThree Limited
Maxima Holdings plc, (AIM: MXM), the acquisitive IT solutions and managed
services company, is pleased to announce the acquisition of SevenThree Limited
("SevenThree") for a total consideration of #1.1m.
Highlights:
* SevenThree supplies Customer Relationship Management (CRM) software and
services, primarily to the Construction and Building Products sector.
* The acquisition has a strong strategic fit with Maxima's existing
solutions business.
SevenThree has a customer base of almost 50 customers and distributes and
implements Microsoft Dynamics CRM and Pivotal CRM in the UK and Ireland. Clients
include Balfour Beatty Rail, Dimplex, Hanson, Sisk, Kingspan and Amey.
SevenThree is Microsoft's only recommended partner for Microsoft CRM in the
Construction Industry, in both the UK and Ireland, based on its development of a
pre-configured solution specifically for the sector. The Construction Industry
is the UK's largest industry sector, contributing 8% to GDP.
For the year ending 31st March 2006, SevenThree had revenues of #1 million and
achieved profit before tax of #130,000. Net assets at 31st March 2006 were
#84,000. Based in Coventry with 11 employees, SevenThree will be immediately
integrated with Maxima's existing solutions business. Maxima believes that there
is considerable opportunity for CRM within its existing base of over 300
construction clients, its wider base of manufacturing, public sector and
financial services clients.
The #1.1 million consideration has been satisfied by a cash payment of #684,000
and the issue of 175,115 new ordinary shares in Maxima ("Consideration Shares").
In addition, at completion Maxima repaid outstanding loans of #93,000. There is
no earn out. Funding for the cash element of the consideration has come from
Maxima's operating cash flows. Maxima will apply to AIM for admission of the
Consideration Shares, which is expected to become effective on 12 March 2007.
The vendors have agreed not to sell the Consideration Shares without the prior
approval of the Company's broker, Cenkos Securities plc, for at least 12 months
from the date of completion of the acquisition. On Admission, the Consideration
Shares will rank pari passu with the existing ordinary shares. All the directors
of SevenThree will remain with the business.
Kelvin Harrison, Maxima's Chief Executive said:
"I am delighted to welcome the SevenThree team into the Maxima Group. We are
encountering strong demand for Microsoft CRM software solutions across all the
markets in which we operate. SevenThree enhances our capabilities and perfectly
complements our existing construction industry solutions, which are strongly
aligned with Microsoft."
Ron Parkin, Managing Director of SevenThree added:
"Being part of Maxima will enable us to accelerate our growth as well as help us
bid for much larger projects. There is a great cultural fit between the two
organisations and everyone in SevenThree is excited about the opportunities this
presents."
For further information, please contact:
Maxima
Kelvin Harrison, Chief Executive 01242 211211
Linda Andrews, Group Finance Director 0141 880 1000
Cenkos
Stephen Keys/Max Hartley 020 7397 8900
Smithfield
Tania Wild/Reg Hoare 020 7903 0676
Notes to editors:
Maxima Holdings plc floated on AIM in November 2004 at an issue price of 110p.
It was established to acquire businesses supplying IT solutions and services,
with the objective of building a focused IT services group. On flotation it
immediately acquired Azur Holdings Ltd, bringing together a management team with
the skill, experience and incentive to deliver significant shareholder value,
through a combination of acquisitive and organic growth. The business implements
and supports enterprise software solutions for mid-sized, UK-based
manufacturing, distribution and service organisations. These solutions are based
upon leading software suites as well as products developed in-house.
It has since made a further six acquisitions:
*August 2005 - Ringwood Group plc, a specialist in content and document
management solutions, based on Microsoft technologies;
*September 2005 - Hanston Technology Partners Ltd, a fast growing managed
services business providing applications support and consultancy services to
Oracle users;
*January 2006 - The MFG/PRO business of Seabrook Research Ltd, the sole
Irish distributor of MFG/PRO, a manufacturing package for which Maxima was
already the sole UK distributor;
*May 2006 - QED Business Systems Ltd, which provides managed services for
critical mainframe and mid-range computer systems and applications software;
*October 2006 - Cognition Solutions Ltd, provider of enterprise software
solutions to the construction and facilities management sector; and
*November 2006 - IIL (Intertech Solutions Ireland) Ltd, which provides IT
infrastructure solutions and managed services based upon Citrix
technologies.
Maxima has grown to become an IT systems integration and managed services
company with a proven track record of delivering innovative and flexible IT
solutions and services. Maxima's in-depth knowledge of industry and business,
coupled with its skills and understanding of leading software suites such as
Oracle, Microsoft and SAP ensures its solutions and services deliver real
business benefits. The group prides itself on the quality of its service, which
leads to strong customer relationships and high retention rates.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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