Electric Word PLC - Acquisition

RNS Number:1481K
Electric Word PLC
8 May 2000


Electric Word plc ("the Company") 
 
 
Electric Word announces that it has completed its first acquisition since
floating on the AIM market on 29th March.  
 
The Company has acquired Optimus Publishing Limited ("Optimus") for a
consideration to be calculated on the basis of 1.5 times the turnover of
Optimus for the year to 31 December 2000, subject to a maximum of #1,000,000.
The deal is expected to value Optimus at approximately #200,000. The
consideration will be satisfied entirely by the issue of ordinary shares in
the Company and is due to be paid by 7th April 2001. The vendors of Optimus
have also been granted 1,800,000 share options exercisable at 5p per share in
the Company and Ed Tranham has been appointed to the board of Electric Word
plc. 
 
Chief Executive Julian Turner: "A key element of our strategy was to find
consolidation opportunities within the newsletter industry and I'm delighted
we have been able to bring Optimus into the group so quickly - we have gained
two top-quality publishers as well as a business with enormous potential."  
 
As stated in the prospectus, Electric Word is broadening its scope from
sports science and health to include education. Optimus (www.optimuspub.co.uk)
produces a range of niche newsletters in education management. Chris Kington,
a director of Optimus, comments: "There is a revolution taking place in the
culture of our schools. The government's deliberate devolution of education
decision-making has changed the agenda for head teachers and their staff - and
created both opportunities and new demands. The challenge now is for senior
teachers to develop more sophisticated management skills. We provide the
guidance and information they need." 
 
Optimus publishes four titles (SENCO Update, CPD Update, Curriculum
Management Update and Headship Matters) and a further four titles are to be
launched over the next six months. 
 
Chris Kington and Ed Tranham are both highly experienced and well-regarded
education publishing professionals. Ed Tranham's previously roles have been
as an education consultant with Capita Group PLC, Finance Director of
Cambridge Education Associates Ltd and Business Development Director at the
information publishing division of Longman. He then worked at Pitman
Publishing, a division of Pearson Professional, before founding Tranham
Associates, risk management company Agena Ltd and, with Chris Kington,
Tranham-Kington consulting and Optimus. 
 
Chris Kington has worked in education publishing for over 25 years. Before
setting up Optimus he was Development Director (Education) with the Longman
Group, a main board position, and group Director of New Media Developments.
He has also served as a non-executive director of the Ordnance Survey. He is
currently a director of consultancy Tranham-Kington and the award-winning
education book publisher Chris Kington Publishing. 
 
In the year ended 31 December 1999, Optimus made a pre-tax loss of #24,899 on
turnover of #65,507. 
 
Ed Tranham will be employed by the Company as Business Development Director
and will receive an annual salary of #25,000 for 2.5 days per week. His
service contract is subject to termination on 6 months' notice. 
 
Meanwhile Electric Word's sports science division continues to develop, with
two new launches planned before October. 
 
Listed below are the names of companies and partnerships of which Ed Tranham
has been a director at any time within the past 5 years.  
 
Current:                                   Previous: 
 
Agena Limited                              None 
Optimus Publishing Limited                     
Tranham Associates  
Tranham-Kington  
 
Ed has not been declared bankrupt, does not have any unspent convictions in
relation to indictable offences, has never been disqualified by a court from
acting as a director and has not been the subject of any public criticism by
any statutory or regulatory authority. There have been no receiverships or
liquidations of companies or partnerships of which Ed was a director or
partner at the time of, or within twelve months preceding, such receiverships
or liquidations. 
 
For further information, please contact: 
 
Julian Turner               020 7251 9035 
Electric Word plc 
 
Jonathan Wright             020 7648 8700 
Seymour Pierce Limited 
 
Adam Reynolds               020 7735 9415 
Hansard Communications.Com 
 


END
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