Rumour in the city of an MBO - fill yer boots up - GO man GO!!

Penney drops for NSB

Wednesday January 1, 2003
The Guardian

Often rumoured but much delayed, former high-flying software vendor NSB Retail Systems' deal with US retailer JC Penney is expected to be announced within

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the next few days.
News of the deal, which involves JC Penney licensing NSB's specialist logistics management software, has been in the market since November.

Talk of the agreement allowed the company's shares to improve by 1p to 7p yesterday, with the announcement likely to be made tomorrow or on Friday.

The size of the deal may yet disappoint. Optimists had suggested it could be worth as much as $15m (£9.3m) a year, but sources say it is more likely to be $4m-$5m a year in licensing fees, as well as one-off spending by the US retailer.

NSB's chief executive, Nikki Beckett, will be able to use the deal as evidence of the company's recovery after a series of grim figures. In October, NSB laid off a further 100 staff. The JC Penney fee should go straight towards the company's bottom line and help it make a bond repayment due this month.