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Abacus buys France's Axess, trading in line

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Date: Wednesday 12 Apr 2006

LONDON (ShareCast) - Abacus sparked into life today after the electronic components distributor announced the acquisition of French based Axess Technology for €23m and said trading remains in line with expectations.

Axess is a privately owned electronic distributor in France specialising in display and wireless communication products and components.

The acquisition will significantly reinforce the French business of Abacus, giving rise to revenue and cost synergies, said Abacus.

“In addition, the expertise in Axess will strengthen the management of the Abacus-Trident display business,” it added.

Axess reported profit before tax of €2.6m for the year 2004 and showed gross assets of €12.6m and net assets of €6.1m as at 31 December 2004.

The €23m will be satisfied by the immediate issue of €6m and €10m in cash, followed by a further €3.5m in cash on 1 April 2007 and €3.5m in cash on 1 April 2008.

The company expects the acquisition to be earnings enhancing in the first full year after completion.

“The group has continued to make good progress with the integration of Deltron and trading remains in line with our expectations,” added Abacus.

Boss Martin Kent said, “The fit of Axess Group with Abacus is remarkable. This acquisition will provide Abacus with real critical mass in France and will also add significantly to the displays capability of the group.”

Interim results for the six month to 31 March 2006 will be published on 31 May.