Alphameric Plc is expanding in the private teletext services business with acquisition of four-year-old IGG Industries Ltd from its parent International Gamma Group for UKP864,000 cash – and taking the opportunity of raising a bit of cash for itself by a placing of UKP1.5m of convertible preference shares with 3i, which will increase 3i’s stake in Alphameric to 13% or 14% on a fully diluted basis, from 10% now. Alphameric’s Bishopgate unit provides equipment for the Stock Exchange Market Eye teletext information system, and racing results to Coral betting shops, using blanking lines from the BBC TV signal, while IGG provides similar services using IBA blanking lines to Marks & Spencer for daily price updates to each store, and to another of the Big Four betting shop chains. Once a user wants to broadcast the same data to more than 100 locations, teletext becomes much cheaper than telephone. IGG lost UKP758,000 last year, but is now near break-even, and should contribute next year.
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