Computer Software Group plc (CS Group), the AIM-listed niche IT software consolidator, has acquired the whole of the issued share capital of Laserform International Limited (Laserform) for a total consideration of £4.8 million. This has been satisfied by £4.3 million of cash provided from an additional banking facility, and also by the issue of 474,712 ordinary shares in CS Group, credited as fully paid. On completion of the acquisition, Laserform had cash reserves of £1.5million.
Following the acquisition of AIM Group Holdings Limited in April 2006, this transaction represents CS Group's second acquisition of a specialist software company servicing the legal sector.
With offices in central London and Lymm in Cheshire, Laserform is a leading provider of forms software to the legal sector, with a client base of over 2,000 firms which includes 80 of the top 100 legal practices in the UK. Recurring revenues account for approximately 70% of total sales.
Laserform's subsidiary, LFM Partnership Solutions Ltd (“LPS”), supplies practice management software, and synergies are planned with AIM Group Holdings Limited, which operates in the same niche market.
Laserform's audited but not consolidated accounts to 30 September 2005, and those of its subsidiary company LPS, recorded combined sales of £4.1 million and EBITA of £0.5 million. The combined net assets of Laserform and LPS as at 30 September 2005 were £0.4 million.
The chairman and majority shareholder of Laserform, Barry Hawley-Green will retire from the business upon acquisition. The remaining six executive directors will continue to be responsible for the day to day operations of Laserform.
Commenting on the deal, Vin Murria, chief executive of CS Group, said: “I am delighted that we are announcing this acquisition less than two months since we first entered the legal market. Laserform is a key component of our strategy to establish a strong position in the legal software sector, which we are well on the way to achieving. Laserform's products and services will enable us to maximise cross-selling opportunities across the legal sector and its practice management software will integrate well with our existing AIM Group business.”