Civica acquires VT Software Solutions.
Civica plc has announced that Civica UK Limited, the company’s wholly owned subsidiary, has acquired VT Software Solutions (“VTSS”) from VT Group plc.
Based in Birmingham and Bristol, VTSS specialises in asset management systems and related services, in particular for social housing, local government, emergency services and defence markets. Customers supplied include approximately 200 local authorities and housing associations, two thirds of UK Police Forces and the UK Ministry of Defence. It is a market leader in the areas of housing and repairs management and vehicle fleet management solutions.
The consideration for the acquisition, to be satisfied in cash, is £3.0 million. In the year to 31 December 2005, VTSS achieved turnover (under Civica accounting policies) of £7.1 million and made operating profits of £0.4 million. As at 31 December 2005, it had gross assets of £4.9 million (including £1.1 million of cash). Civica expects the acquisition to be immediately earnings enhancing for the Group.
As part of the transaction, Civica has also entered into a partnership with VT Group plc to develop joint opportunities within the defence and emergency services markets.
VT Group chairman Michael Jeffries commented, “We have conducted a comprehensive business review of our vehicle support acquisitions and decided that Software Solutions was not aligned with our core business. However, the fit with Civica is good, and we will continue to work closely with them to deliver services to joint customers such as the Ministry of Defence and the Metropolitan Police. We also hope to address further opportunities together in the future.”
* VT Group chief executive Paul Lester is a non-executive director of Civica plc, therefore has taken no part in the transaction discussions and is not in a position to comment upon the transaction.
For further information, please contact:
Civica plc 020 7760 2813: Simon Downing, Chief Executive
Civica plc 020 7760 2813: Mike Stoddard, Finance Director
Buchanan Communications: Tim Thompson / Nicola Cronk 020 7466 5000
Full press release can be downloaded here