Acquisition of Q-Max

Date : 10/01/2009 @ 2:00AM
Source : UK Regulatory (RNS & others)
Stock : Netcall (NET)
Quote : 16.0  0.0 (0.00%) @ 3:50AM
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Acquisition of Q-Max

 

TIDMNET 
 
RNS Number : 0164A 
Netcall PLC 
01 October 2009 
 
? 
Embargoed for release at 7am, 1 October 2009 
 
 
Netcall plc 
("Netcall", the "Company" or "the Group") 
 
 
Acquisition of Q-Max 
 
 
Netcall plc (AIM: NET), a leading provider of software solutions to the contact 
centre market, today announces that it has entered into an agreement for the 
acquisition of the entire issued and to be issued share capital of Q-Max Systems 
Limited ("Q-Max"), a leading UK-based provider of workforce management software 
to contact centres. The acquisition will be for a total consideration of 
approximately GBP2.5 million, predominantly payable in cash with the remainder 
payable in new ordinary shares in the Company. 
 
 
Q-Max's workforce management software is a widely deployed workforce management 
solution in UK contact centres. The software allows managers to forecast the 
volume of transactions that a contact centre will be required to handle and to 
schedule the optimal number of agents to meet the anticipated demand, improving 
productivity and customer experience. 
 
 
Q-Max has a diverse client base of more than 100 existing customers in all 
market sectors, offering significant cross-selling opportunities for the Group. 
Traditionally delivered as premise-based solutions, the Q-Max software will be 
integrated with Netcall's existing product portfolio and also made available on 
Netcall's hosted platform, expanding the product's addressable market and 
allowing delivery as a SaaS based solution. 
 
 
Q-Max has a positive cash balance and no debt. For the year ended 31 December 
2008, Q-Max reported an unaudited pre-tax loss of approximately GBP80,000 after 
royalty payments, with gross assets of approximately GBP413,000. 
 
 
On current run rates, Q-Max is expected to generate revenues of approximately 
GBP1.3 million per annum of which a significant proportion is maintenance 
revenues. The Board expects to derive substantial cost savings and going forward 
Q-Max is expected to contribute significantly to the Company's growth. 
 
 
Henrik Bang, CEO of Netcall, commented, "Q-Max provides Netcall with more than 
100 new customers and enhances the Company's product offering. Q-Max's software 
will be integrated with our existing product portfolio and will be ported onto 
the Company's hosted platform to enable delivery of a SaaS solution and 
facilitate cross-selling opportunities across the enlarged customer base. 
 
 
"The acquisition of Q-Max reflects the Board's objective of achieving long-term 
profitable growth through complementing organic growth with acquisitions. We 
intend to continue to take advantage of opportunities resulting from industry 
consolidation should they arise, building further shareholder value." 
 
 
Further information on the Acquisition 
 
 
Q-Max is entirely owned by two individuals (the "Vendors"), one of whom is a 
partner in Hampstead Consulting and the other of whom is a partner in Telecentre 
Consulting ("the Partnerships"). On completion of the acquisition, Netcall will 
also acquire the business and assets of the Partnerships. Each Partnership has 
been engaged to provide the consultancy services of the relevant vendor. The 
Partnerships own equally the software IP rights and license it to Q-Max for 
delivery, installation and ongoing maintenance with Q-Max's customers. Upon 
completion, the Partnerships will assign the Q-Max IP exclusively to the 
Company. No liabilities of the Partnerships are being acquired by Netcall. 
 
 
The consideration for the acquisitions comprises cash of GBP2,223,000, payable 
to the Partnerships, from the Company's existing resources on completion of the 
acquisition of the Business, plus the issue to the Vendors of 1,596,958 new 
ordinary shares of 5p each in the Company ("New Shares") in respect of the 
acquisition of Q-Max. The consideration of New Shares is derived from the 
average closing mid-market price of the existing shares in the Company over 
seven consecutive trading days to 29 September 2009. The New Shares are subject 
to an 18 month long lock-in arrangement, subject to certain exceptions. 
Application is being made for admission of the New Shares to trading on AIM and 
admission is expected to take place on 6 October 2009. On admission completion 
of the acquisition occurs. 
The new ordinary shares will, when issued, rank pari passu in all respects with 
the existing ordinary shares. Following this issue the Company will have 
64,197,689 ordinary shares in issue, which represents the Company's total voting 
rights. 
 
 
For further enquiries, please contact: 
 
 
+--------------------------------------+------------------------------------+ 
| Netcall plc                          | Tel.    +44 (0) 1480 495300        | 
+--------------------------------------+------------------------------------+ 
| Henrik Bang, CEO                     |                                    | 
| Michael Jackson, Chairman            |                                    | 
+--------------------------------------+------------------------------------+ 
|                                      |                                    | 
+--------------------------------------+------------------------------------+ 
| Evolution Securities Limited         | Tel. +44 (0) 20 7071 4300          | 
+--------------------------------------+------------------------------------+ 
| Robert Collins / Barry Saint -       |                                    | 
| Corporate Finance                    |                                    | 
+--------------------------------------+------------------------------------+ 
| Tim Redfern - Corporate Broking      |                                    | 
+--------------------------------------+------------------------------------+ 
|                                      |                                    | 
+--------------------------------------+------------------------------------+ 
| ICIS Limited                         | Tel.    +44 (0) 20 7651 8688       | 
+--------------------------------------+------------------------------------+ 
| Tom Moriarty / Caroline Evans-Jones  |                                    | 
+--------------------------------------+------------------------------------+ 
 
 
 
About Netcall 
 
Netcall is a U.K. company listed on the AIM market of the London Stock Exchange. 
Based near Cambridge, Netcall develops and supplies innovative communication 
solutions to organisations of all sizes, including many blue-chip companies with 
global contact centre operations. As the leading specialist in callback, 
auto-messaging and contact solutions, Netcall helps organisations globally to 
increase profits and productivity while improving customer satisfaction and 
employee morale. 
Solutions are deployed either onsite or as hosted managed services using 
Netcall's Intelligent Communications Platform (ICP). The company has more than a 
decade's experience owning and running a high-availability service platform 
co-located with international carriers. Netcall's customer list includes Anglian 
Water, Birmingham City Council, BT, BUPA, Cable & Wireless, First Direct, 
Halifax, Interflora, Lloyds TSB, McAfee, npower, Oracle, Prudential and RBS (The 
Royal Bank of Scotland Group). 
 
 
Please visit www.netcall.com for more information. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 ACQURAURKKRKOUR 
 


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