Acquisition

RNS Number:8898K
Touchstone Group PLC
09 May 2003








Date:         9th May 2003

Contacts:     Keith Birch, Managing Director
              Touchstone Group plc              020 8441 7755

              David Bick                        [e-mail]
              Holborn Public Relations          020 7929 5599





Touchstone Group plc


Purchase of the Microsoft Great Plains division of Tenon Group


Touchstone Group plc ("Touchstone"), a leading IT services group supplying
integrated business solutions and services to mid-size UK companies, announces 
the acquisition of the Microsoft Great Plains unit of Tenon Technology ("Tenon")
a division of Tenon Group plc, the UK accountancy group.


Microsoft Great Plains is a sophisticated business software solution that Tenon
has supplied to over 50 customers over the last 5 years. The turnover generated
from this business in the year to December 2002 was #1.6m. Approximately
#750,000 of this turnover related to implementation fees and associated software
sales that are not expected to be repeated in future years. The estimated profit
contribution of this unit prior to premises and central costs in the year to
December 2002 was #350,000. As Touchstone is acquiring a client list and certain
employees, no tangible net assets are being transferred.


In addition to the transfer of certain key members of staff and the
responsibility of supporting Tenon's Great Plain's clients, this agreement also
establishes a trading relationship between both organisations to expand their
respective portfolio of products and services.


The agreement is phased over a 2-year period with total cash consideration
capped at #750,000. The deferred element of #325,000 will be payable once target
levels of profitability over the two year period have been achieved.



Andy Raynor, Chief Executive of Tenon Group, commented:


"Tenon's re-focus on core services combined with Touchstone's 21-year pedigree
in supplying sophisticated business solutions will ensure our Great Plain's
clients will receive the best possible service going forward. This transaction
reinforces Touchstone's dominant position within the Microsoft Business Solution
market place and importantly will allow Tenon to work with a partner who is
totally committed to customer service. The benefits to both companies are likely
to extend well beyond the terms of this agreement."


Keith Birch, Managing Director of Touchstone added:


"Like Touchstone, Tenon has applied a professional and capable approach to the
supply and service of its Great Plains clients. We are extremely pleased to have
their clients and staff on-board and look forward to working with Tenon in the
future."


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