Distributor and provider of computer maintenance and services Vistec Group Plc has made an agreed UKP7.8m bid for third-party maintainer the DDT Group. Vistec’s 40-for-nine share offer at 120 pence represents a 23.1% premium on DDT’s share price at the time of the offer, and the offer is being handled for Vistec Group by Smith […]
Distributor and provider of computer maintenance and services Vistec Group Plc has made an agreed UKP7.8m bid for third-party maintainer the DDT Group. Vistec’s 40-for-nine share offer at 120 pence represents a 23.1% premium on DDT’s share price at the time of the offer, and the offer is being handled for Vistec Group by Smith New Court Corporate Finance Ltd. The deal is still in the balance, however, as irrevocable undertakings have been received only from DDT’s directors, speaking for just 12.4% of DDT Plc’s shares. Moreover Apricot Computers Plc now holds 29% of DDT’s equity, and may well decide to make a counter-offer – unless it waits until this deal is done and then goes for the whole enlarged group. The offer is conditional on receipt of only a simple majority of the DDT shares, so Apricot can sit on its hands, not tender its shares, and watch events. DDT turned in pre-tax profits of UKP116,000 for the six months to September 30 on a turnover of UKP3.6m. The Vistech Group has no results as yet as it was created last December following F & H Group Plc’s acquisition of Vistec Business Systems Ltd and Oysteroak Computing Ltd which traded together under the name National Computer Supplies. Separately, however, Vistec Business Systems reported pre-tax profits of UKP1.1m on turnover at UKP16.6m for the year ending March 31, while Oysteroak saw pre-tax profits of UKP315,000 on turnover of UKP3.9m for the year to May 31. The Vistec Group Plc now operates as a distributor and a third-party maintainer offering sales and rental of viewdata products; distribution of low-end micros with software and peripherals to end-user organisations in the UK; and computer-based commercial services such as third-party maintenance, application design consultancy, software development, training and technical support. The offer for DDT was made in the belief that, together, the third-party maintenance business of Vistec and that of DDT would provide the volume and geographical spread necessary for them to become a major player in this market as DDT offers Vistec a high volume of business, and is operational in Ireland, while Vistec has greater resources for services and support. If the offer is successful the third-party maintenance arm of Vistec will be run with DDT’s business under DDT’s name and with DDT’s chairman James Crook at its head. Vistec shares currently trade on the Unlisted Securities Market, but it intends to apply for to move to the Full List after publication of its year-end results in April 1990.