The Board of Associated Network Solutions PLC (ANS or the Company), a leading UK information technology solutions provider and winner of the annual Inner City 100 Award, announces today that it has agreed to acquire for cash the Intellectual Property and Support Contract assets of Medfile Ltd, a leading UK supplier of web solutions and applications to the National Health Service.
Under the terms of the agreement, the consideration is for 100,000, of which 75,000 will be payable on completion and the balance of 25,000 contingent on the first years performance. The company name, web site and telephone number are also included in the transaction. The Board believes that todays acquisition will provide additional revenues for ANS, which in turn will result in increased profitability for the Company.
The new customer-base of 25 NHS trusts will provide ANS with additional revenue opportunities and a new range of products including: Fuse, which enables IT professionals to build high quality websites quickly and effectively; and FOI Manager, a web solution to meet the demands of the Freedom of Information Act 2000. These new products will also create further opportunities within ANSs existing customer base.
The enlarged support contact base, as a result of the acquisition, is expected to make a contribution to gross profits in the region of 50,000 per annum, yet will not require the employment of additional staff. On completion of the acquisition, ANS's support revenues on an annual basis will stand at 700,000 - an increase from 500,000 for the same period 12 months ago.
Your Board believes the Company is on target to achieve this years growth objectives, and looks forward to updating shareholders shortly on the launch of a new product, which is currently being evaluated by customers.
Commenting on todays announcement, Ian Hogg, Chairman of ANS, stated: We believe this is an excellent earnings enhancing acquisition that will provide a number of benefits for the Company. As well as extending our customer and product base, todays acquisition demonstrates the continuation of our strategy to bring together complementary businesses that strengthen our already strong market position.