The acquisitions improve the Group’s software development capabilities, enable new products to be introduced more quickly and provide access to additional vertical markets. This move also brings DICOM into Application Service Provider (ASP) markets and marks the Group’s first step into a European ASP Network.

These follow recent acquisitions in August and October of companies in Germany and Italy respectively and further strengthens DICOM’s position as the leading data and document capture solutions provider in Europe.

DICOM operates as a product developer, sales and service supplier in 23 countries in Europe, the United States, South East Asia and Australia. It is the only company quoted on the Official List in London and the Neuer Markt in Frankfurt and is a member of the techMark and Nemax all share index.

Commenting on the benefits of the expansion developments, Otto Schmid, Chairman and Chief Executive of DICOM said:

The acquisitions increase our software development capabilities and allow additional implementation of our existing Kofax Ascent Software not previously possible. The acquisitions offer us a partnership with a company that has extensive knowledge in hosting of data and documents, giving added strength to the company. It also expands our geographical presence into Croatia’s fast growing economy, strengthens and increases our existing presence in Italy.

Details of the transactions

DICOM GROUP, through its subsidiary DICOM Holdings International Ltd, has bought 60 per cent of the issued share capital of the Croatian data and document capture service centre SIDUS d.o.o. (SIDUS) for a total consideration of £1.6m payable in cash and 220,630 ordinary DICOM shares.

SIDUS, based in Verteneglio, in Istria, Croatia, had revenues of £0.7m for the first nine months ended 30 September 2000. SIDUS, founded in November 1998, employs 82 people. The Management will stay with the business.

DICOM has also purchased the assets and liabilities of Computer Data Control S.r.l. (CDC), an EDC services provider in Italy for a total consideration of £0.9m payable solely in cash.

CDC, based in Vicenza, Northern Italy, had revenues of £1.1m for the year ended 31 December 1999. CDC was founded in 1987 and employs 14 people. The Management will continue with the business.

New Subsidiary in Asia

DICOM Asia, 40% owned by DICOM GROUP, has formed a new subsidiary, AZAG Asia Holdings, to act as a development centre in Kuala Lumpur (Malaysia), for DICOM GROUP’s Kofax subsidiary and other DICOM subsidiaries. DICOM Asia is an associated undertaking of the Group and has offices in Malaysia, Singapore, Indonesia, the Philippines and Australia.

Kofax has already provided project work to AZAG. Kofax, a DICOM subsidiary based in California, USA, is a supplier of the remote capture Ascent software products and the Virtual Rescan (VRS) product and is currently one of the market leaders in document capture.