Cedar Group PLC - Acquisition
November 04 1999 - 2:03AM
UK Regulatory
RNS Number:2401A
Cedar Group PLC
4 NOVEMBER 1999
Cedar Group Plc ("Cedar" or "the Company")
Acquisition of the Financial Management System Division
of PPSL Ltd ("FMS")
The Company is pleased to announce that is has reached
agreement to acquire FMS from PPSL Ltd. PPSL Ltd is a
subsidiary of Leading Software Ltd, a UK-based software
and services group. The acquisition has been purchased
for a maximum cash consideration of #1.25m. The
consideration is linked to the successful novation of
customer contracts and will be funded out of the proceeds
of the underwritten rights issue announced on 30
September 1999.
FMS has been a leading provider of financial systems to
UK Local Authorities for more than a decade and has an
active base of more than 50 customers. The division owns
and develops the software that it markets and also
provides consultancy, project management and installation
services. FMS is profitable with turnover in excess of
#1.5m in 1998 including a high level of recurring
maintenance and support revenues.
The acquisition of FMS provides Cedar with the
opportunity to continue the rapid growth of its business
in the UK local government market, a sector which is
investing significantly in Information Technology. Cedar
has a long history of providing financial systems to
local authorities and is also actively marketing its Call
Centre and Businessflow products into these customers.
The FMS employees bring to Cedar a wealth of experience
and expertise of financial systems and local government.
FMS has designed some modules specific to the needs of
Authorities which Cedar will absorb into its own product
family as part of its plan to encourage customers to
migrate to Cedar Financials.
At the same time Cedar is also pleased to announce a
strategic relationship between Cedar and Orbis Software
Ltd ("Orbis"), a subsidiary of Leading Software Ltd.
Orbis specialises in the development of Human Resources
systems and this partnership will add the Orbis HR
products to the Cedar portfolio. This move is another
important step toward Cedar's aim to emerge as a provider
of complete solutions to enterprise-wide problems. In
addition Leading Software Ltd will market Cedar
Financials as a part of its own ERP (Enterprise Resource
Planning) offering into its chosen markets.
Mike Harrison Managing Director, commented:
"FMS is a quality software and services business with an
extensive customer base that offers significant cross
marketing opportunities for Cedar Group products. We
believe that this strategic acquisition will make Cedar
the largest supplier of finance systems to UK Local
Authorities.
I am also excited about our link with Orbis. This
agreement represents another important step towards our
aim of establishing Cedar as a provider of complete
solutions to enterprise wide problems."
For further information please contact:
Michael Harrison Managing Director
Mike Hosie Group Finance Director
Cedar Group Plc 01932 584000
Russell Cook
Teather & Greenwood Limited 0171 426 9000
Shane Dolan
Biddick Associates 0171 377 6677
END
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