Why Themutual.net will make Asos's shareprice look like a blip on the screen..

themutual.net PLC - Acquisition

themutual.net plc
Acquisition of iD Factor Limited
themutual.net plc, ("TMN" or "themutual.net") the online media owner
specialising in direct email marketing and rewarded shopping portals, is
pleased to announce the acquisition of the entire issued share capital of iD
Factor Limited ("IDF"), the online market research services company, for an
initial consideration of £0.13 million, and deferred consideration of up to £
2.86 million depending on the future profitability of IDF (the "Acquisition").
Highlights
* Provides a solid foothold in the rapidly growing online survey market

* Highly complementary with existing group data

* IDF has over 200,000 members available through its panel-based databases

* Strong technology platform & infrastructure for growth

* IDF managing director joins TMN board

* Opportunity to build further research panel from TMN's existing databases

Mark Smith, CEO, said,
"This is a hugely exciting acquisition which opens up opportunities in the
booming online market research sector and, fits neatly with our vision of
making themutual.net a one-stop service for online marketers. We're delighted
to add the expertise and technology of iD Factor to our group and look forward
to applying TMN's additional resources to realize the excellent growth
potential of IDF.
Combined with our recent acquisition of EDR, we feel that the TMN is now at the
forefront of online direct marketing and the addition of IDF further
strengthens our position in a growing marketplace."
The initial payment comprises £30,000 in cash and £100,000 through the issue of
loan notes, the deferred consideration of up to £2.86 million is payable up to
£1,033,334 by way of the issue of additional loan notes and up to £1,826,666
million through the issue to the vendors of new ordinary shares of 0.01p each
in TMN ("Contingent Shares") in four instalments at the prevailing share price.
The number of Contingent Shares to be issued in each instalment is dependent on
the profitability of IDF for the relevant period, being the 6 months ending
30th April 2006 and the years ending 30th April 2007, 2008 and 2009
respectively.
The loan notes to be issued to the Sellers in conjunction with the Acquisition
accrue interest on a day-to-day basis on the notes in issue at the rate of 2%.
The principal amount and accrued interest on a note can be redeemed by the
holder of a note not earlier than one year and not later than three years from
the date of issue of the relevant note.
Jon Gumbrell has been appointed to the Board of TMN effective from Completion.