Tribal Group PLC Acquisition (5106H)

TIDMTRB

RNS Number : 5106H

Tribal Group PLC

08 June 2017

08 June 2017

Tribal Group plc ("Tribal")

Acquisition of private social network Intellectual Property for education markets

Tribal Group plc is pleased to announce that it has acquired from Wambiz Limited the Intellectual Property Rights ("IPR") and exclusive distribution rights for the Wambiz private social network solution to the education markets across the UK, Australia and New Zealand. Tribal will also have the non-exclusive rights to sell the solution into Canada.

The acquisition is an important step in Tribal's product strategy, delivering a social network solution that will be integrated into its new student information framework, driving a single engagement solution for students.

The initial consideration for the acquisition is GBP1.25m, with further non-contingent consideration of GBP289k and GBP485k payable at the end of years 1 and 2 respectively.

Completely at Tribal's discretion, if in years 2 to 5 Tribal decides to sell this product into schools and work based learning customers, Tribal will have to pay away 30% of net revenue from these markets to Wambiz Limited. In years 4 and 5 this pay away is capped at GBP625k and GBP525k respectively.

Wambiz Limited will be novating 34 existing customer contracts to Tribal. The asset value of these contracts and the IPR to be included in Tribal's accounts is expected to be approximately GBP2m. Tribal cannot accurately calculate the profit attributable to the contracts as Wambiz Limited did not allocate cost per contract.

Barbara Staruk, Managing Director Product and Development, Tribal, said:

"We are pleased to be able to fully integrate the Wambiz solution, which is already proven at education institutes in both Higher and Further Education, into our new Student Information framework and look to providing our customers with exceptional support and even more innovative solutions as we move forward."

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For further information please contact:

 
 Tribal Group plc              Tel: [phone] 
 Ian Bowles, Chief Executive 
 Mark Pickett, Chief 
  Financial Officer 
 
 
 Weber Shandwick Financial     Tel: [phone] 
 Nick Oborne 
 Tom Jenkins 
 
 Investec Bank plc             Tel: [phone] 
 Rowena Murray 
 Sara Hale 
 Daniel Adams 
 
 N+1 Singer Capital Markets    Tel: [phone] 
  Limited 
 Shaun Dobson 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 08, 2017 02:00 ET (06:00 GMT)