Aptitude Software Group PLC

Regulatory Filings • Feb 27, 2017

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RNS Number : 8550X

Microgen PLC

27 February 2017

microgen

www.microgen.com                                                                              27 February 2017

ACQUISITION OF PRIMACY CORPORATION

Microgen plc ('Microgen') is pleased to announce the acquisition of Primacy Corporation ('Primacy') from the Kelly Family Trust for total cash consideration of CAD5.6 million (Canadian Dollars) (£3.4 million). Primacy is a Toronto-based provider of software to the Trust & Fund Administration market and will be integrated into the Microgen Financial Systems business.

Primacy is the fifth acquisition by Microgen since December 2014 and continues the Group's strategy of consolidation in the Trust & Fund Administration market, a global niche within the broader Wealth Management sector. These acquisitions provide Microgen with an increased client and recurring revenue base and complement the organic growth in Microgen 5Series revenues resulting in the Microgen Financial Systems business becoming increasingly focussed on Trust & Fund Administration.

Primacy's revenue in the year ending 31 October 2016 was CAD2.0 million (£1.2 million) with profit before tax of CAD0.9 million (£0.6 million). The gross assets at 31 October 2016 were CAD1.2 million (£0.7 million) and it is anticipated that at completion there will be cash and net funds of approximately CAD0.2 million (£0.1 million). The acquisition of Primacy is anticipated to be earnings enhancing in the current financial year and is funded through Microgen's existing cash resources.

As previously announced, Microgen expects to announce its preliminary results for the year ending 31 December 2016 on 8 March 2017.

Contacts

Philip Wood, Chief Financial Officer                               020-7496-8100

James Melville-Ross / Darius Alexander                           020-3727-1000

FTI Consulting

This information is provided by RNS

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