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Group NBT plc to accelerate growth with the acquisition of Exalia Ltd
25 August 2006, London
Group NBT, the UK's leading web hosting and domain name management company, is pleased to announce that it has acquired the entire share capital of Exalia Ltd, a provider of managed hosting services, for a maximum consideration of £3.2 million. Exalia, which is based in London, provides high-end managed hosting services to agencies and technical intermediaries. This acquisition will accelerate Group NBT's growing managed hosting business and enhances our ability to meet the requirement of larger companies for more complex solutions. The acquisition of Exalia, which will operate under the NetBenefit brand, will be earnings enhancing in the current half-year. NetBenefit is Group NBT's managed hosting brand. The consideration will be satisfied in three tranches, an initial payment of £2 million in cash, then two further payments of up to £600,000 payable if certain revenue targets are achieved in the twelve month periods ending 31 January 2007 and 31 January 2008. The first deferred payment is payable in cash and the second deferred payment will be satisfied by the issue of Group NBT shares to the Exalia vendors. For the year ended 31 January 2006 Exalia generated revenue of £530,000 with profit before tax of £70,000. As at 31 July 2006 unaudited net assets of the company were £309,000. The company is growing quickly, it had an annualised revenue base of £1 million at the end of July this year and is targeting to have an annualised revenue base of over £2 million by 31 January 2008 in order to meet the maximum earn-out criteria. Geoff Wicks, Chief Executive of Group NBT, said "We are delighted to have acquired Exalia Ltd, it will strengthen our NetBenefit brand and accelerate our growth in the managed hosting market. This acquisition is immediately earnings enhancing and will improve margins and build scale for us in the managed hosting market. I look forward to updating shareholders with further news of our progress on 14 September when we announce our preliminary results." For further information contact:
Shane Dolan, Biddicks - + 44(0)20 7448 1000
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