COMPANY PRESS RELEASE: Anite, the European consultancy and services company, has announces that it has, through its wholly owned subsidiary, Anite Public Sector Limited, entered into a conditional agreement to acquire the business of Lorien Consulting.
A division of Lorien Plc specialising in customer loyalty consultancy,
management consultancy and IT consultancy services across government and
industry for a consideration of up to £4.8 million.
The consideration comprises an initial consideration of £2 million in cash
payable on completion of the transaction and a deferred payment of £2.5
million in cash which is guaranteed by Lloyds TSB Bank Plc. The total
consideration is subject to an adjustment based on the net asset value of
Lorien Consulting at completion, subject to a maximum upwards adjustment of £
Anite Group provides a portfolio of services from IT consultancy and
applications software to systems integration and managed services to four
principal markets: telecoms, travel, public sector and finance. Anite Public
Sector, which is acquiring Lorien Consulting, offers services to local and
central government covering social services, revenue, benefits, housing
applications and criminal justice, principally in the UK.
Anite continues to build its position in the local authorities’ market, with
72% penetration, based on a range of applications and increasing customer
base. Anite’s public sector business is also well placed to benefit from the
government’s initiatives for ‘joined-up’ local and central government and
e-government, which include budgeted spending, by 2005, of £2bn on
e-government solutions to local authorities. Following its establishment as a
fully integrated and homogenous business during the last financial year, the
business has grown its sales from £7m two years ago to £38m last year,
generating operating profits before tax of £2.2m. For the six months to 30th
October 2001, compared to the same period last year, sales were up 76% to £
23.7m, with operating profits before goodwill, amortisation and interest 765%
higher at £2.2m. At 30th October 2001, order books totalled £29m.
Lorien Consulting provides customer loyalty consultancy, management
consultancy and IT consultancy services to public sector organisations
including government departments and local and regional authorities,
businesses in the telecommunications, utilities and transport sectors as well
as a number of private sector clients. It employs over 70 people, principally
based in Chertsey in Surrey.
The acquired business will continue to be led by George Kalorkoti, its current
Managing Director, and will provide the nucleus for an expanded consultancy
and systems integration operation, building on the solutions capability
already provided by Anite to its central government clients. Following
improved profitability in 2001, Lorien Consulting is expected to contribute
towards Anite Public Sector’s performance in the financial year ended 30th
April 2003 by enhancing its market offering and overall capabilities