Update on BSG Strategic Review

 

TIDMASW TIDMBSG 
 
RNS Number : 8770U 
Advanced Computer Software PLC 
01 July 2009 
 

Advanced Computer Software Plc 
 
 
("ACS" or "the Company") 
 
 
 
 Update on BSG Strategic Review 
 
 
 
 Advanced Computer Software Plc (AIM: ASW), a leading provider of 
software and IT services to the Primary Care sector, announces the results so 
far of its strategic review of Business Systems Group Holdings Plc ("BSG"), 
which was acquired on 12 June 2009 (via declaration of an unconditional offer). 
 
 
ACS has agreed to outsource its infrastructure resale business effective from 1 
July 2009 to BT Engage IT Limited ("BT Engage IT").  The agreement allows BSG 
customers to benefit from greater scale, breadth of portfolio and efficiencies 
of BT Engage IT, while continuing to enjoy the highly focused services delivered 
by BSG.  Under the agreement BSG will continue to provide IT services to the 
shared customers while BT Engage IT will meet their hardware requirements. BSG, 
as part of the ACS group, will now concentrate on the core business of providing 
managed services and solutions and of supporting the roll out of new ACS's 
health care product offerings. 
Under the terms of the partnership agreement with BT Engage IT, BSG will receive 
a percentage of the gross margin achieved by BT each year for three years 
subject to a minimum of GBP0.5m per annum and 26 BSG employees will be 
transferred to BT Engage IT.  The proceeds will be used by ACS to pursue its 
growth strategy. 
The infrastructure business contributed GBP1.1m to overheads of  the BSG group 
in the year to 31 March 2008. 
Vin Murria, CEO ACS said 
"We have undertaken a strategic review of the entire BSG business as we said 
when we announced the BSG acquisition. This review quickly identified that BSG's 
core businesses of managed services and solutions will support ACS' long term 
strategy of organic and acquisition growth but that the infrastructure business 
is better served through a partnership with BT Engage IT.  This agreement allows 
us to continue focusing on the growth of managed services whilst still 
supporting customers in their infrastructure needs." 
 
Enquiries: 
 
 
Advanced Computer Software Plc 
 Vin Murria, Chief Executive Officer 
[phone] 
 Karen Bach, Chief Financial Officer 
 
 
Seymour Pierce Ltd 
Richard Feigen                          [phone] 
Sarah Jacobs 
 Christopher Wren 
 
 
College Hill 
 
Adrian Duffield                                 [phone] 
2815 
Carl Franklin 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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