Intelligent Environments Group (LON:IEN), the AIM listed online financial services software business, has set out plans for a reverse takeover of Documetric Ltd, a company that provides technology-led outsourcing services in finance and administration including payments processing, content management and business intelligence. As part of the deal, the company is raising £4.5m in a placing priced at 7p per share and will change the name of the combined group to Parseq plc. The company’s shares remained unchanged at 7.25p.

IE said the deal would create a strong new business with significant scale and capability providing a complete end-to-end service in the growing Business Process Outsourcing market. Specifically, the move will combine IE’s expertise in online and mobile banking markets with Documetric's middle and back office to deliver turnkey solutions to clients. It noted that that enlarged group would be better equipped to exploit IE’s inherent technology and core competencies within the mobile banking market. It will also offer up significant new sales pipelines underpinned by cross selling and entry into new market opportunities.

Clive Richards, the current non-executive chairman of IE and the proposed deputy non-executive chairman of the enlarged group, said: “I am delighted to announce this acquisition, subject to, inter alia, shareholder approval, which will dramatically transform our business and create a financially strong new entity with comprehensive outsourcing solutions, scale and market presence. With our new, combined offering, I believe there exists a real opportunity for the enlarged group to drive growth within both established and new markets and to better capture the opportunities inherent in the online and mobile banking market where IE currently has a competitive technology advantage.”

In 2009, revenues at IE were flat on 2008 figures at £6.42m caused by a 12% decline in upfront licences due to the cancellation of a major contract with Chelsea Building Society. As a result, pre-tax profits fell to £0.9m from £1.2m.

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