Civica plc - Acquisition of Radius Limited

Civica plc (“Civica” or “the Company”), the software and services group focused on the public sector, is pleased to announce that on Monday 13th September 2004, Civica Holdings Limited, the Company’s wholly owned subsidiary, acquired Radius Limited (“Radius”).

Radius, based in Feltham, Middlesex and with offices in Watford and Altrincham, specialises in application software and related services for the UK public sector. It is a supplier of financial applications for local government and counts 220 of the 442 local authorities as customers. The acquisition gives Civica access to technology in the growth areas of e-payments, e-procurement, debt and financial management systems.

The consideration for the acquisition, to be satisfied in cash, is £14.2 million. In the year to 31 December 2003, Radius achieved turnover of £8.5 million and made an operating profit of £1.2 million. It had gross assets of £18.1 million (including £17 million of goodwill) as at 31 December 2003. Civica expects the acquisition will be immediately earnings enhancing for the Group.

The Company has funded the acquisition through an extension of its existing debt facilities with Barclays Leveraged Finance.

The acquisition is a related party transaction as defined in the AIM Rules, as Alchemy Partners (Guernsey) Limited, a significant shareholder in Civica, was the controlling shareholder of Radius. The Directors of Civica, save for Paul Lester (the director nominated by Alchemy Partners (Guernsey) Limited) consider, having consulted with the Company’s nominated adviser, that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

Commenting, Simon Downing, chief executive of Civica said, “I am delighted to welcome Radius to the Civica group. This marks the first step in our stated strategy to bring together complementary businesses that strengthen our market position. The combined product set along with our practitioner consulting and proven managed services will enable us to offer more comprehensive solutions across a much wider customer base, including growth areas such as e-payment and e-procurement.”

Enquiries

Civica plc Simon Downing / Mike Stoddard 020 7760 2800
Buchanan Communications Tim Thompson / Nicola Cronk 020 7466 5000
Seymour Pierce Mark Percy / Sarah Wharry 020 7107 8047