AFA Systems to acquire Sams
07 November 2003 | 3116 views | 0
City software house AFA Systems has announced the proposed acquisition of asset management technology vendor 'Sams' for a total consideration of £1.2 million, and a fully underwritten placing to raise £1.7 million at 17 pence per share.
In the six months to 30 September 2003, Sams achieved turnover of £1.2m from its core Socrates product suite. The firm also has contracted revenue of £0.6 million for the year to 31 December 2004 from an outsourced application management contract for UBS.
AIM-listed AFA Systems - which reported operating losses of £1.2 million for the six months ending September 2003 - says it expects to make material costs savings by combining support and central functions and re-assigning ongoing development to its offshore centre in South Africa.
Mike Hart, AFA chairman and chief executive says the acqusition will allow the company to offer a more complete suite of complementary products to its customers, adding Sams' analytical applications to AFA's transaction-orineted suite of software products.
"Sams' customers include several major European asset managers, bringing a number of opportunities for the enlarged group," he says.
The acquisition is to be funded through a mixture of cash and loan notes payable to Sams' major creditor and shareholder LDC, the private equity arm of Lloyds TSB. The £1.7 million placing is being underwritten by Bridgewell and will provide additional working capital for the company during the integration process, says Hart