The deal is technically a reverse takeover, as Xpert’s value is greater than that of Redstone. The purchase will be financed through a combination of cash, shares and loan notes.
Borehamwood, UK-based Redstone employs approximately 290 people, and made a loss of GBP 3.4m ($6.4m) on revenue of GBP 60.7m ($114.0m) in the year ended April 30 2004. The company is active in both the public and private sector. In its last fiscal year, 32% of total orders came through its education department, 7% came from government clients and 6% from healthcare providers, with retail contributing 18% and financial services 6%.
Xpert has about 200 staff, split between offices in Ireland and the UK, and provides contact centers, IP networks, server management and security services. The group recorded a pre-tax loss of GBP 3.9m ($7.4m) on revenue of GBP 27.3m ($51.2m) for the year ended April 30 2004.
Xpert shares many of Redstone’s key business areas. In its last fiscal year, 24% of Xpert’s total revenue came from financial services, 22% from healthcare, 15% from education and 8% from government. Both companies also have partnerships with Cisco and Avaya.
