Red24 PLC Acquisition (7227O)

TIDMREDT

RNS Number : 7227O

Red24 PLC

01 June 2015

RED24 PLC

(the "Group", "Company" or "red24")

Acquisition

red24, the crisis assistance company, is pleased to announce that it has today exchanged contracts with Michael Haughey for the acquisition by red24 of RISQ Worldwide Pte. Ltd. ("RISQ Worldwide") for an initial consideration of 550,000 Singaporean Dollars ("SGD") (c. GBP267,000) and up to a further SGD 1million (c. GBP485,000) depending on the financial performance of RISQ Worldwide during the years ended 30 June 2016 and 30 June 2017.

RISQ Worldwide has been established for 8 years, with offices in Singapore and Hong Kong. The company specialises in corporate investigations, business intelligence, employment background screening and bribery act compliance as well as risk solutions for high net worth individuals. Michael Haughey heads RISQ Worldwide and he has 30 years' experience in investigations and risk management. Going forward Michael will head the red24 business in Asia and the global corporate investigations practice. In RISQ's last audited financial year to 30 June 2014, RISQ Worldwide had revenues of SGD 1.4million (c. GBP679,000), net liabilities of SGD 574,423 (c. GBP279,000) and made an operating loss of SGD 350,664 (c. GBP170,134). The current financial year to date has seen an improvement in trading with an increase in revenue and a return to profitability. RISQ Worldwide has secured a number of contracts with blue chip clients in recent months which should further enhance earnings.

red24 and RISQ Worldwide, whilst operating in a similar market, have a significantly different product range. The opportunity to cross sell into each customer base will considerably improve the overall performance of both businesses. Importantly, it will give red24 an established presence in the Asia market to support existing and future client requirements and will also enhance red24's global coverage.

The acquisition is expected to complete on 01 July 2015.

Simon Richards, red24's Chairman commented; "I am delighted to announce the acquisition of RISQ which we believe will augment the Company both strategically and financially, thereby enhancing shareholder value. RISQ has established an extremely compelling value proposition comprising strong long-term relationships with its extensive experience in Asia.

"The combination of red24 and RISQ will enable the Company to benefit from cross selling products and provide a permanent presence in Asia from which to develop in the region."

Enquiries:

Red24 plc Tel: 0203 291 2424

Simon Richards, Chairman

Maldwyn Worsley-Tonks, Chief Executive Officer

finnCap Tel: 0207 220 0500

Julian Blunt, Corporate Finance

Tony Quirke, Corporate Broking

Yellow Jersey PR Ltd Tel: 07768 534641

Philip Ranger, Kelsey Traynor

About red24

Red24 is a crisis assistance company that provides a range of security and business support services, offering preventative and reactive advice to help organisations and individuals to avoid or manage security and business risks to themselves, their families and their businesses. Its products and services are distributed through leading international financial service companies.

This information is provided by RNS

The company news service from the London Stock Exchange

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