CMG Croma Grp

RNS No 9763h
CMG PLC
31 March 1999


  CMG plc acquires Belgian-based IT services company

CMG plc, the European IT services Group, announces that
it acquired on 30 March 100% of the Softguide Group, a
systems development company employing 100 people in
Belgium.  Softguide addresses applications based on
mainframe, client/server and web technologies, as well
as SAP Human Resources implementation.

Softguide is a SAP-HR Logo Partner and is the only SAP
development partner in Belgium.  At the request of SAP
Walldorf and in co-operation with them, it has further
enhanced the SAP payroll module for the Belgian market.
In the client/server and Internet arenas, the company
has strategic partnerships with Microsoft, Sybase and
IBM.  Over the last two years, the company has achieved
growth in excess of 30% per annum with high levels of
productivity and a high quality customer portfolio.

Softguide was founded in 1990 and was wholly owned by Mr
G Dullaert who will remain with the company to spearhead
its development within CMG.  The Softguide management
team has also committed to the merger and will work in
co-ordination with the existing CMG Brussels operation
under the name of CMG Softguide.  Softguide has an
established reputation and a customer list that includes
major industrial concerns and financial services
organisations.

In the year ended 31 December 1998, the Softguide Group
had a consolidated turnover of BEF 366 million (#6.1
million) and a profit before tax of BEF 132 million
(#2.2 million).  The total consideration, to be paid in
cash, is BEF 770 million (#12.7 million) representing
goodwill and a further payment in May based on the
balance sheet at 31 March 1999, estimated to be around
BEF 215 million (#3.5 million).  The company is expected
to make a positive contribution to CMG's earnings before
goodwill amortisation in 1999.

CMG Benelux Chairman, Hugo Schaap, commented:

   "The acquisition of Softguide accelerates our
   progress in Belgium where we acquired CSS in late
   1997 and continued to grow organically through 1998.
   We have been aware of Softguide's reputation in the
   market from early in that process and are very
   pleased that Mr Dullaert, his management team and
   their highly skilled team of people will now be
   working with us."
   
Cor Stutterheim, Chairman of CMG, added:

   "We continue to pursue our strategy of adding to our
   organic growth through acquisition when we identify
   suitable businesses with good management, like-
   minded people and established customer
   relationships."

CMG's results for the year to 31 December 1998 were
announced on 8 March and showed revenue growth of 44%
and profit growth (before tax and goodwill amortisation)
of 54%.


For further information please contact:

Hugo Schaap, Country Chairman, CMG Benelux,
tel: +31 (0)20 50 33 000
Tony Richards, Group Communications (London), CMG plc,
tel: +44 (0)171 592 4000
Jan Massier, Group Communications (Amsterdam), CMG B.V.,
tel: +31 (0)20 67 20 444
Seb Hoyle, Citigate Dewe Rogerson,
tel: +44 (0)171 638 9571


END

ACQWBUACWBGBGAU

Croma Grp (LSE:CMG)
Historical Stock Chart
From Jun 2024 to Jul 2024

Croma Grp (LSE:CMG)
Historical Stock Chart
From Jul 2023 to Jul 2024