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TIDMPTY
RNS Number : 2711E
Parity Group PLC
29 May 2012
Parity Group plc ("Parity" or the "Group")
Acquisition of Inition Limited
Parity, the UK IT services group, is pleased to announce today that it has acquired Inition Limited ("Inition"), a leading-edge 3D technology business based in Shoreditch, London. The acquisition enhances Parity's emerging technology capabilities and is the first step in implementing the Group's stated strategy to move into the expanding digital media market.
Inition is a leading independent 3D technology consultant, systems integrator and equipment provider with particular skills in 3D printing, stereoscopic 3D video production and cutting edge, interactive 3D and augmented reality (AR) projects.
Inition was founded in 2001 by four computer science graduates, Jim Gant, Stuart Cupit, Andrew Millns and Chris Sutton (who left the company in 2005). Following the acquisition, Jim, Stuart and Andrew will continue to run the business.
Parity Digital Solutions Limited, a wholly owned subsidiary of Parity, has acquired the entire issued and to be issued share capital of Inition for an initial consideration of GBP2.25 million, satisfied as to GBP1.5 million in cash on completion and as to GBP0.75 million by the issue of 3,031,527 new ordinary shares in Parity (representing an issue price per ordinary share of 24.74 pence, being the average of closing mid-market share price of the Company over the 30 previous trading days before completion).
Additional cash consideration of up to GBP1 million may become payable depending on the ongoing performance of Inition up to 31(st) March 2014 (an earn-out of GBP0.5 million is payable to the vendors if Inition makes at least GBP0.3 million profit before interest and tax in the year to 31(st) March 2013, and a further GBP0.5 million is payable if Inition makes a profit before interest and tax of at least GBP0.5 million in the following year).
For the financial year ending 31(st) March 2012, the Board of Inition expects turnover of GBP2.64 million, profit before tax of GBP0.06 million and gross assets at year end of GBP0.92m.
The acquisition is expected to be earnings enhancing in the Group's financial year to 31(st) December 2012.
Parity CEO, Paul Davies, said: "We are delighted to bring this well-known Shoreditch based centre for the latest 3D technology into our Group. Inition will significantly strengthen our emerging technology skill base and market position, and we are particularly pleased that its directors are taking significant holdings in our Group as part of the consideration, reflecting our joint enthusiasm for Parity's prospects in this growing market."
Inition's, Jim Gant, said: "We are excited by the opportunity to grow Inition with the greater resources that being a part of Parity Group will give us and we very much look forward to being part of their new digital strategy."
For Further information, please contact:
Parity Group plc +44 (0) 845 873 6941
Paul Davies, CEO
Singer Capital Markets +44 (0) 20 3205 7500
Shaun Dobson
MHP Communications +44 (0) 20 3128 8100
John Olsen / Ian Payne
This information is provided by RNS
The company news service from the London Stock Exchange
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