IT training firm Xpertise has bought two rival companies in a multi-million pound reverse takeover deal that it intends to fund through a placing of new shares.
Altrincham-based Xpertise, which is listed on the Alternative Investment Market, is seeking to raise é2.2m for the acquisitions by issuing eighty thousand new shares at 2.75p each. The shares will begin trading in January.
The group is buying IT training firms Power Education and certain assets and liabilities of Sphinx from their Yorkshire-based parent group Lynx.
Xpertise said the acquisition is part of its plan to lead a consolidation in the IT training market which the group forecasts to recover from its current malaise in 2003.
At its interim results, the group announced it had began to reverse losses. For the six months to June 30, continuing operations grew 12 per cent to é2.1m.
The business made a pre-tax loss of é333,000 compared with é231,000 in the corresponding period last year, after establishing a new training solutions division at a cost of é133,000.
It was formed later than planned in April 2002, but has since won orders worth more than é200,000.
Targets
Xpertise also bought John Bryce Training in July from administration for é190,000.
The group has been further strengthened from the recruitment of individuals with the expertise to build and manage larger IT training businesses.
Xpertise chairman Mike McGoun, said: "We have achieved our targets through establishing a projects business and gaining a foothold in scheduled training in the south east through our acquisition of John Bryce Training.
"The acquisition of Power Education and Sphinx will now provide a huge step forward for Xpertise. We are very pleased to welcome the companies and look forward to growing the combined business with them."
Richard Last, chief executive of Lynx, said: "Power Education has progressed over the past decade, and we have sought an opportunity to extend out presence nationally.
"We are delighted to be joining Xpertise group and to exploit the potential presented by our increased size and the forecast recovery of the IT market."
Because of the size of the deal Xpertise has to seek re-admission to AIM. The Manchester offices of Brewin Dolphin BDO Stoy Heywood advised on the reverse takeover.
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