SCISYS PLC Commercial milestone achieved by ANNOVA Systems (4580N)

TIDMSSY

RNS Number : 4580N

SCISYS PLC

09 August 2017

The information communicated in this announcement includes inside information for the purposes of Article 7 of Regulation 596/2014

SCISYS PLC

(SSY: AIM)

Commercial milestone achieved in BBC contract by ANNOVA Systems GmbH

SCISYS PLC ("SCISYS"), the supplier of bespoke software systems, IT-based solutions and support services to the Media & Broadcast, Space, Government, Defence and Commercial sectors, is pleased to make the following announcement, further to its acquisition of ANNOVA Systems GmbH ("ANNOVA") in December 2016. ANNOVA has successfully completed a key milestone in respect of its long-term contract with the BBC, for the supply of ANNOVA's OpenMedia software. With the critical software functionality implementation and live pilot milestones successfully completed, roll-out of ANNOVA's OpenMedia software solution across the BBC will now start as part of the next stages of this project.

On achieving this milestone, an earn-out payment of EUR2.02m will become payable to the sellers of ANNOVA in respect of ANNOVA's financial year ending 31 December 2016. This will be satisfied by a cash payment of EUR1.82m, funded from existing cash resources and bank facilities, with the balance to be satisfied in new ordinary shares in SCISYS, subject to a 36 month lock-in. A further announcement will be made once the final number of shares is determined in accordance with the terms of the original acquisition agreement, and application for admission to AIM will be made.

ANNOVA (www.annova.tv), based in Munich with roots going back to 1989, is a leading supplier of newsroom editorial solutions in the media sector. It has a robust business model based on its mature OpenMedia software solution. OpenMedia provides next-generation newsroom system functionality, enabling story-centric workflows for news to be created for distribution on any medium. OpenMedia software licence sales are complemented by the sale of professional and consultancy services.

Commenting, Klaus Heidrich, CEO of SCISYS said:

"Congratulations to the entire ANNOVA management and team. We are excited that ANNOVA has successfully achieved this important project milestone in close cooperation with the customer, which supports our assumptions made when evaluating the potential in ANNOVA's contract with the BBC.

"The team will maintain the momentum as it moves into the so-called transition phase where OpenMedia will be deployed across the BBC. The achievement is testament to the outstanding capabilities and performance of ANNOVA and impressively proves the rationale for this acquisition."

For further information please contact:

 
                                          [phone] 
 SCISYS PLC                                466 
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 Mike Love           Chairman 
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 Klaus Heidrich      Chief Executive 
                      Officer 
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 Chris Cheetham      Finance Director 
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 finnCap (NOMAD 
  & Broker)                               [phone] 
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 Julian Blunt        Corporate Finance 
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 Mia Gardner         Corporate Broking 
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 WalbrookPR                               [phone] 
  Tom Cooper/Paul                          8780 
  Vann                                     [phone] 
                                           [e-mail] 
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About SCISYS:

Employing around 500 staff, SCISYS group is a leading developer of information and communications technology services, e-business, web and mobile applications, editorial newsroom solutions and advanced technology solutions. The Company operates in a broad spectrum of market sectors, including Media & Broadcast, Space, Government and Defence and Commercial sectors. SCISYS clients are predominantly blue-chip and public-sector organisations. Customers include the Environment Agency, the Ministry of Defence, Airbus Defence & Space, Arqiva, Vodafone, the European Space Agency, EUMETSAT, the BBC, RNLI, Interflora and the National Trust. The Company has UK offices in Chippenham, Bristol, Leicester and Reading and German offices in Bochum, Darmstadt and Munich. More information is available at www.scisys.co.uk.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 09, 2017 02:00 ET (06:00 GMT)