The Computer Software Group plc (CS Group) today announced the acquisition of the whole of the issued share capital of the legal systems supplier Videss for a total consideration of £7.07 million. The consideration was satisfied by a payment in cash of £6.57m, provided by an additional banking facility, and the issue of 518,135 ordinary shares in CS Group, credited as fully paid. (Application has been made for the consideration shares to be admitted to trading on AIM and admission is expected to commence on 7 August 2006.) At completion, Videss had cash resources of approximately £2.80 million.
transaction, following the acquisitions of the AIM Group in April 2006
and Laserform in June 2006, represents CS Group's third acquisition in
the legal IT market and a total spend to-date of just under £17.2 million.
Videss has over 180 mid-to-large sized law firms, approximately 10,000 users and the value of annual support contracts exceeds £2.0m. Videss audited accounts to 31 March 2006 recorded sales of £4.97 million and profit before taxation of £0.43 million. The net assets of Videss at 31 March 2006 were £1.77 million. The founder & chief executive of Videss, Paul Sanderson, together with his wife Sonja, currently finance director, will retire from the business on acquisition. Chris Rose, who has been with the business for over 22 years, will continue in his role as sales director.