Fidessa group plc ("Fidessa") announces that on 30 June 2008 it completed the disposal of its investment in Touchpaper Group Limited ("Touchpaper").
Avocent Ireland Holdings Limited is acquiring the entire share capital of Touchpaper. Fidessa held ordinary shares, loan notes and preferred ordinary shares (together "Fidessa's Interest") in Touchpaper and all are being acquired or redeemed.
Touchpaper is a leading global provider of IT Business Management solutions. Fidessa divested a majority stake in the business to the management team in 2001 in order to concentrate on the growth opportunities for the Fidessa product set. Since that date Fidessa has had no operational involvement in the business and Touchpaper's results have not been consolidated into Fidessa's performance. In the year to 31 December 2007 Touchpaper reported revenues of £17.5 million, profit before taxation of £0.4 million and gross assets of £9.4 million.
The consideration for Fidessa's Interest in Touchpaper is entirely in cash with initial consideration of £13.2 million generating an initial one-off gain of £12.3 million for Fidessa which will be recognised in the first half of the current financial year. There is further consideration of up to £0.5 million payable later in 2008 subject to certain working capital conditions being met at completion and additional consideration of up to £3.4 million on the second anniversary of the disposal subject to there being no claims against warranties. The proceeds from the disposal will be used for general corporate purposes.