TIDMGLAN
RNS Number : 3380T
Glantus Holdings PLC
24 November 2021
24 November 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH
IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
GLANTUS HOLDINGS PLC
("Glantus", the "Company" or the "Group")
ACQUISITION OF MERIDIAN COST BENEFIT LIMITED ("MCB")
Highlights
- Strategically significant and earnings enhancing acquisition.
- Total consideration of up to GBP3.03m.
- UK-based MCB will provide Glantus with an additional forty
four customers with over 60% of revenue from public sector. This
will bring Glantus' enterprise customers to over 100.
- MCB brings 20 years of expertise and experience in Accounts
Payable recovery and specialist utility auditing services,
bolstering Glantus' strong growth in the space.
- Addition of MCB team represents an expansion of Glantus' EMEA
presence, adding more auditing and sales capabilities.
- MCB customers will be able to access more transformative AP
tools through the integrated Glantus platform, such as procurement
to payment, statement reconciliation, and data optimisation.
Summary
Glantus, the provider of Accounts Payable automation and
analytics solutions, has acquired Meridian Cost Benefit Limited for
a total consideration of up to GBP3.03 million (the
"Acquisition").
Meridian Cost Benefit (MCB) is a provider of accounts payable
recovery audits and specialist audits in telecom and utility
contract compliance audits. Based in St Albans, UK, MCB provides
recovery services across the United Kingdom. It has been trading
since 2006 and has built up a considerable customer base. For the
year ended 31 December 2020, MCB reported turnover of GBP1.4m and
pre-tax profits of GBP366k.
The Acquisition offers the opportunity to cross-sell the
individual technologies of both Glantus and MCB across the combined
customer base, together with an acceleration of the Company's
organic growth within the existing customer base.
About MCB and Acquisition Rationale
MCB has 44 UK customers, and brings the Glantus enterprise base
to over 100. In addition, the Acquisition brings Glantus into the
lucrative government and semi-state market which is in line with
the strategic growth plans of the Glantus Executive Committee. The
ability to reference customers in this market will allow Glantus to
replicate the offering across government agencies in other
geographies and with an average annual spend per enterprise
customer in excess of an estimated $500 million, it provides an
excellent opportunity for Glantus to expand its target customer
profile. In addition, the Glantus platform will bring an integrated
solution and capability to MCB customers, offering its product
portfolio of Datashark, Statement Shark and Docushark.
Details of the Acquisition
Under the terms of the Acquisition, Glantus UK Ltd, the
Company's wholly owned UK subsidiary, has acquired MCB for a total
consideration of up to GBP3.03m, comprised of an initial
consideration of GBP2.1m in cash on completion, GBP0.53m nine
months after completion and GBP0.40m fifteen months after
completion. The MCB vendors have also entered into a subscription
agreement with the Company to subscribe GBP0.5m of the initial cash
consideration received under the Acquisition in return for 581,395
new ordinary shares of EUR0.001 each in the Company (the
"Subscription Shares"). The Subscription Shares are subject to a
lock-period ending on the date of publication of the Company's
annual accounts for the financial year ending 31 December 2021 and
to an orderly marketing arrangement for a further period of 12
months thereafter.
The cash consideration under the Acquisition is being funded
through the Company's existing cash resources.
Maurice Healy, CEO of Glantus, said: "We are delighted to have
the MCB team join Glantus. This acquisition further strengthens the
strategy we outlined at the time of the IPO. We welcome the wealth
of experience the MCB team brings to Glantus EMEA. As we continue
to shift the focus to subscription revenue the acquisition of MCB
along with recent acquisitions of JPD and TIC consolidates our
position in the AP market. This provides a greater opportunity to
deploy our unique AP products driving our subscription revenue.
Peter Welch, Founder and CEO of Meridian Cost Benefit, said: "We
recognize that customers are increasingly looking at automation and
AI to drive further efficiencies in their financial processes. With
Glantus, we now have the advanced technology platform and the team
behind us to deliver additional services to our customers."
Application and Total voting rights
Application is being made for the admission to trading on AIM
("Admission") of the 581,395 Subscription Shares. It is expected
that Admission will be effect on or around 29(th) November
2021.
Following Admission, the total number of ordinary shares in
issue will be 37,833,316, each with equal voting rights. The
Company does not hold any rights in treasury. The total voting
rights figure can be used by Shareholders as the denominator for
the calculations by which they will determine whether they are
required to notify their interest in, or a change of their interest
in, the Company under the Disclosure Guidance and Transparency
Rules of the Financial Conduct Authority.
For further Information, contact :
Glantus Holdings plc + 353 (1) 8895300
Maurice Healy, CEO
ir@glantus.com
Arden Partners plc
Nominated Advisor and Broker
Ruari McGirr / Richard Johnson (Corporate) +44 (0)20 7614 5900
Simon Johnson (Broking)
Flagstaff Strategic and Investor Communications
Tim Thompson + 44(0)20 7129 1474
Mark Edwards
Fergus Mellon
glantus@flagstaffcomms.com
Editor Notes:
Glantus (AIM:GLAN) is a global provider of Accounts Payable
automation and analytics solutions. Our mission is to simplify data
to drive constant innovation. The award-winning Glantus Data
Platform provides an end-to-end AP solution that layers onto
existing systems eliminating cost and delivering new revenue
streams. Glantus has over three hundred customers across more than
fifty countries, including Fortune 500 brands and large
multi-nationals.
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END
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