As previously reported (CI No 1,226), Logitek Plc the Manchester based distributor of microcomputers is to acquire the Advansys Group for just over UKP10m. The offer is four new Logitek shares for an ordinary Advansys share, or a partial cash alternative of three new Logitek shares and 173 pence for each ordinary Advansys share. Initially, the offer is worth UKP7m, with the further UKP3m related to Advansys’ earnings for the year to April 30 1990. Logitek has received irrevocable undertakings from Renaissance Holdings Plc which holds 58% of Advansys’ share capital, and from all the directors of Advansys who account for another 25% of its shares. Advansys is composed of three independent businesses: CSM Ltd which supplies and develops accountancy software packages such as Auditman, Minuteman, and Taxman II; CSM Systems Plc which sells total systems from companies such as Compaq and IBM to corporates, small and medium-sized businesses and accountants; and Azlan Ltd, best-known for distributing Novell local area networking products to the personal computer dealer network. Logitek believes that the acquisition of Advansys will increase its penetration of the applied software market, and expand its added value technical distribution and services. Logitek reported pre-tax profit of nearly UKP3m on turnover of UKP29m in the year to March 31, and will place 1m new shares to raise UKP1.6m for the working capital requirements of the enlarged group. On completion of the acquisition, Mike Brooke, chairman of Advansys will join the Logitek board.
