Microgen acquires Lynx Wealth Management Systems
13 July 2005 | 6955 views | 0
UK IT services firm Microgen has acquired the entire issued share capital of Lynx Wealth Management Systems (LWMS), provider of trust, fund and private banking systems, for a total consideration of £3.7m, which includes debt of £1.6m.
LWMS is based in Eastleigh, Hampshire in the south of England and has offshore sales and support offices in Guernsey, Isle of Man and Cayman.
For the year to 30 September 2004, unaudited consolidated management accounts report LWMS revenue at £5.6m and an operating profit before exceptional items of £0.06m, although Microgen says the firm's operating performance has deteriorated in the current financial year. At 30 June 2005, LWMS had unaudited net liabilities of £2.4m. This includes a net debt of £1.6m which Micrgoen says it intends to pay.
Following the acquisition, LWMS will be integrated into Microgen's asset management business within the group's financial services division. LWMS's current premises in Eastleigh will be closed down in September.
Microgen says restructuring charges associated with the integration are estimated to be around £0.4m which will be incurred in the current financial year.
Microgen rencently pulled a £53.1 million offer for UK financial technology house AttentiV after being out-bid by Nordic software house TietoEnator.
In a brief trading update Microgen says the strong performance in Q1 reported in the AGM trading update in April provided a solid foundation for the first half of the year, although the customer caution experienced at that time has continued through to the second quarter.
But the board still expects that results for the six months to 30 June 2005 to be in line with the increased profit expectations, producing a strong performance in the half-year. Net funds at 30 June 2005 were £17.1 million, although this was before the acquisition of LWMS and recent purchase of R/Base, a UK provider of SAP applications management and consultancy services, which Microgen bought earlier this month for £1.22m in cash and shares.
Microgen shares were up 0.50 pence to 80.00 in morning trading.