REG - Tialis Essential IT - Acquisition

Tialis Essential ITAnnouncement

20/12/2022 07:00

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RNS Number : 2397K  Tialis Essential IT PLC  20 December 2022

Tialis Essential IT Plc

("Tialis" or the "Company")

Acquisition

Tialis, the mid-market network, IT Managed Services provider is pleased to
announce the exchange of contracts for the purchase of profitable partner
contracts from Allvotec, a division of Daisy group adding an expected c.
£5.7m in revenue in FY23. Completion is expected to occur on 31 January 2023
("Completion").

The acquisition will bring three new channel partners to Tialis, supporting
the diversification of Tialis' partner base and will also build on the
existing relationship that Tialis has with its largest channel partner.

In addition, 140 staff will transfer from Allvotec to Tialis to ensure the
smooth transfer and execution of the contracts.

Andy Parker, Chairman of Tialis commented: "This is a pivotal moment in the
continued recovery and restructure of Tialis. The acquisition of these
profitable contracts will further cement the position of Tialis as a partner
of choice for the services it provides. Adding around 50% more to the revenues
next year and three new channel partners will boost profit for Tialis in 2023
and provide longer term opportunities with the new partners."

Revenue and EBITDA from these contracts are expected to be approximately
£12.5m and £1.5m respectively over the 12-month period to 31st December
2022.

The contracts will be acquired for an expected consideration of £2.144m,
payable over a two-year period, £2.037m will be paid at Completion and the
balance paid on a deferred basis, subject to certain performance conditions.
All consideration will be paid in shares of Tialis at a share price of 89.2p
(the "Consideration Shares"), being the share price for the recent debt
conversion.

It is the current intention that Matthew Riley, the Founder and Chairman of
Daisy will join the Board of Tialis as a Non-executive Director upon
Completion.

An application will be made to the London Stock Exchange for the initial
Consideration Shares to be admitted to trading following completion. A
further announcement will be made in due course.

For more information, contact:

 

 Tialis Essential IT Plc                               Tel: +44 (0)344 874 1000

 Andy Parker, Non-Executive Chairman

 finnCap Limited                                       Tel: +44 (0)20 7220 0500

 Nominated Adviser and Broker

 Corporate finance: Jonny Franklin-Adams/ Abby Kelly

 ECM: Tim Redfern

 

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