Torex acquire KPOS Computer Systems
| Buyer | Torex Retail |
| Seller | KPOS Systems |
| Business | Retail Software |
Torex Retail plc Acquisition of KPOS Computer Systems
Torex Retail plc, a leading provider of IT solutions to major European retailers, today announces the completion of the acquisition of KPOS Computer Systems Limited for a total consideration of £8.7 million. This will be satisfied by the payment of £5.0 million in cash and £3.7 million by the issue of 6,839,321 new ordinary shares. On completion KPOS had cash balances of £2.1 million.
KPOS, established 28 years ago, is a well respected supplier of electronic point of sale systems to the UK market with clients including Waterstone's, Virgin Megastores, Focus DIY, Millets, Rosebys and Shoefayre. The company is an IBM Premier Business Partner and a Microsoft Certified Solutions Provider. Based in the UK and Malaysia, KPOS employs approximately 70 people. The acquisition will enable Torex Retail to expand its customer base and its portfolio of leading edge store management solutions.
For the year ended 31 March 2004, KPOS achieved revenues of £9.5 million and pre-tax profits of £0.8m. Torex Retail expects the acquisition to be earnings enhancing in the current year.
Lew Gray, currently Managing Director of KPOS and a major shareholder, will join the board of the Group's UK Store Management Solutions business.
Commenting on the acquisition, Mark Pearman, Chief Executive of Torex Retail, said:
We are delighted to welcome KPOS to the Group. This immediately earnings enhancing acquisition expands our growing UK customer base and increases our UK channel to market. KPOS has an outstanding reputation for customer service and this together with their strong product portfolio significantly strengthens our offering in Store Management Solutions.
Lew Gray, Managing Director of KPOS added: This is a very exciting time for KPOS and we are thrilled to be joining Torex Retail at this point in their development. Torex Retail has a blue-chip client base and market leading technology. We look forward to working with the Torex Retail team to firmly establish the company as the leading European retail solutions provider.
Application will be made for the Consideration Shares to be admitted to trading on AIM. It is expected that admission will become effective on 13 August 2004.