MMT Computing Plc is to acquire Webbins Ltd, a supplier of software products and services to the utilities sector with major clients in the electricity industry. MMT has already acquired 51% of Webbins for 500,000 pounds in cash, with a further 370,000 pounds payable subject to Webbins achieving a minimum 200,000 pounds profit after tax for the financial year to August. Another 33% is to be acquired on the basis of eight times net profits for the year to August 1998 and the 16% balance on the basis of eight times net profits for the year to August 1999, with a ceiling set at 6.5m pounds in aggregate for Webbins. Webbins itself has a 66.66% stake The Utilities Exchange Ltd, which provides a central database to facilitate the trading of electricity and gas but the minority shareholder in the Exchange has an option to acquire Webbins’ shareholding in three tranches, at prices calculated by reference to profits for each of the three financial years ending March 2000. Webbins did 216,000 pounds pre-tax on 1.2m pounds sales in the year to September 1995, and had assets of 247,366 pounds.
