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Kingston Communications (Hull) Plc acquisition of Smart421
Press Release issued by Kingston Communications (Hull) Plc - 29 September 2006
Kingston Communications (HULL) PLC ("Kingston") today announces the acquisition of Smart421 ("Smart421") for a cash consideration of £24.2 million, including cash and cash equivalents of approximately £4.0 million. Smart421 is a specialist in the area of business applications integration and increasingly delivers both integration and ongoing applications managed services to blue chip organisations.
The business has developed long term partnerships with its customers and currently provides services to some of Europe's largest blue chip businesses including O2, Norwich Union, E2V and UPC.
Smart421, which will be managed as a discrete business entity, provides a complementary and strong strategic fit within Kingston and in particular, with Affiniti, our communications integration business.
In the year ended 30 June 2006, Smart421 reported turnover of £11.1 million (2005: £8.9 million) and profit before tax of £1.5 million (2005: £0.3 million). As at that date, the business had gross assets of £6.6 million, including a cash and cash equivalents balance of £3.4 million. On present performance, the acquisition will be immediately earnings accretive.
Commenting on the acquisition, Malcolm Fallen, Chief Executive of Kingston Communications, said: "The acquisition of Smart421 provides an exciting opportunity for Kingston. The business has an outstanding reputation in the applications integration marketplace, offering a high quality service to its customers. The Group will benefit from the immediate extension of application-related skills, particularly through Smart421's Microsoft and IBM capabilities."
For further information, please contact:
Kingston Communications (HULL) PLC
Corporate Communications
Anita Pace - Tel: 01482 602666 - Mobile: 07770 744322
The Maitland Consultancy
Colin Browne - Tel: 020 7379 5151 - Mobile: 07733 103800
Note to editors
About Kingston Communications
Kingston Communications is a leading provider of communications. Our capabilities are built on the solid experience gained in our heartland in East Yorkshire, where we have been providing leading edge residential and business services for 100 years.
Today, we also offer a wide range of voice, data and internet services to businesses across the UK as well as outsourced contact centre services. Using our own network infrastructure, we deliver reliable, cost effective connections for our customers. By listening and working closely with them, we use our experience and expertise to help companies serve their own customers as effectively as possible.
Kingston Communications is a member of the TechMark exchange.
For further details on Kingston Communications, please visit our website at www.kcom.com
About Smart421
www.smart421.com
Smart421 is a managed services and integration specialist, providing outsourced IT services for mid-market and enterprise organisations in both the public and private sectors.
Smart421 focuses on three key solution areas: Managed Services, Integration and Innovation, delivered using a unique onshore/offshore service structure. This allows Smart421 to combine onshore project management and expertise with offshore development and technical services, to deliver a rare combination of innovation, excellent customer service and demonstrable cost savings.
Smart421 maintains good relationships with its technology partners to sustain its specialist technology skills and deliver expertise and scale. Smart421 has close associations with Indian based organisation Tech Mahindra and is an IBM Premier and Tier One WebSphere Services, a Microsoft Gold and an Oracle Partner.
Founded in 2000 and headquartered in Ipswich, UK, Smart421 has over 130 employees. Smart421 values the long term relationships built with some of Europe's largest organisations and its customer base includes Norwich Union, UPC Broadband, O2 and E.ON.
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