Alterian (LSE:ALN), the leading provider of database marketing and customer insight solutions, today announced it has acquired MarkIT, a specialist in delivering marketing technology through ASP services.
The initial consideration to be paid by Alterian on completion is £36k in cash. Additional consideration of up to £250k, subject to the finalisation of certain agreements by MarkIT, will be satisfied by a combination of cash and shares: up to £120k will be payable in cash and the balance satisfied by the issue of up to 129,113 new shares in Alterian. On completion Alterian will also assume MarkIT's net liabilities of approximately £320k. £140k of the liabilities will be satisfied by the issue of 138,614 new shares in Alterian. Deferred consideration of up to £245k in cash may become payable subject to certain performance targets for the period to 31 March 2006.
The acquisition is expected to be earnings enhancing in the first full year post acquisition.
This acquisition expands Alterian's service portfolio to its Partner network. Through the acquisition, Alterian will deliver a new service called "Alterian Connect" which manages computer hardware and Alterian software deployed on this hardware and delivers access to these Alterian solutions via the internet.
Alterian Connect enables Marketing Service Providers to provide access to Alterian software for their clients more rapidly and is expected to accelerate the associated software licence revenue. Alterian Connect will also provide a new revenue source from Alterian Partners for the ASP services and is expected to prove attractive to prospective Partners who currently do not have this resource. Alterian Connect is available on a global basis with immediate effect.
As an Alterian Partner of seven years, MarkIT has developed extensive knowledge and skills in the deployment of Alterian technology via ASP services. Current clients include Bradford & Bingley and The Tote. The acquisition will allow these skills to be made available to the entire Alterian partner network.
MarkIT had a turnover of £635k, an operating profit of £27k and a profit before tax of £3k in the year to 31 July 2004. At 31 July 2004 MarkIT had net liabilities of £392k. At 6 April 2005, MarkIT's net liabilities acquired by Alterian had reduced to approximately £320k as a result of the profitable operation of MarkIT in the period up to acquisition.
Alterian has today made an application to the UK Listing Authority and the London Stock Exchange for admission to (1) the Official List and (2) to trading on the London Stock Exchange's markets for listed securities of 138,614 New Ordinary Shares. The New Ordinary Shares will rank pari pasu in all respects with the existing ordinary shares in issue.
David Eldridge, Chief Executive Officer of Alterian commented: "This is a very positive move for Alterian and our business Partners. Through the acquisition of MarkIT, Alterian will make available to our Partner base additional specialist skills to accelerate penetration of their customer and prospect base with Alterian based solutions. It also represents an additional, complementary, revenue flow for Alterian, and access to a wider market of potential Partners."