McDonnell Douglas Information Systems Plc has shortened its name to McDonnell Information Systems ahead of its London flotation, now set for March. The Hemel Hempstead, Hertfordshire company is looking for a valuation of over UKP250m, and plans to raise over UKP150m in the flotation, most of which will be new equity. The lion’s share will go to repay the UKP140m debt taken on in the company’s management buyout from McDonnell Douglas in March last year. The firm will also give existing shareholders the chance to sell some of their own redeemable preference shares, and some directors may be thinking of selling small quantities of shares; that, along with possible lock-up agreements for directors, is being discussed with broker Natwest Wood Mackenzie & Co Ltd. Institutional investors that came in on the initial sale of the software and computer services business by McDonnell Douglas Corp include Baring European Capital Funds, Advent Interational, Fonda Partners, Montagu Private Equity Ltd and the Commercial Union Assurance Company Ltd. In the half year to June 30 1993, McDonnell Information had a pre-tax profit of UKP5.2m on an unaudited turnover of UKP66.5m. The business, which deals primarily with local authorities and libraries with its Pick-derived applications, as well as marketing applications development tools, was sold off rather than floated by McDonnell Douglas because the market was not seen to be in a receptive mood at a time when the parent needed cash to invest in its core aerospace and defence markets.
