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Product category: Switches and Keyboards
News Release from: Abacus Group
Edited by the Electronicstalk Editorial Team on 13 April 2006

Axess acquisition boosts Abacus' French
presence

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Abacus Group has acquired the French based Axess Technology Group and its wholly owned subsidiary RDI.

Abacus Group has acquired the French based Axess Technology Group and its wholly owned subsidiary RDI Axess Technology Group is a privately owned electronic distributor in France specialising in display and wireless communication products and components

RDI was acquired by Axess in January 2005 and is a distributor in France of passive electronic components.

The two companies occupy separate buildings on the outskirts of Paris.

The acquisition will significantly reinforce the French business of Abacus Group, giving rise to revenue and cost synergies.

In addition, the expertise in Axess will strengthen the management of the Abacus-Trident display business.

Patrick Journo, founder and Chief Executive of Axess, will join the Board of Abacus Group.

He and the General Manager of RDI will remain with the enlarged Abacus Group under the terms of their existing service contracts.

The last available audited accounts of Axess Technology Group at 31st December 2004 showed gross assets of Eur 12.6 million, net assets of Eur 6.1 million with profit before tax of Eur 2.6 million for the year 2004.

RDI was acquired for Eur 4.1 million cash consideration and at that date had gross assets of Eur 8.5 million, net assets of Eur 5.8 million and profit before tax of Eur 0.1 million for 2004.

The consideration will be Eur 23 million, to be satisfied by the immediate issue of Eur 6 million new Abacus shares (2.85 million shares at an average price of GBP 1.4635 per share) and Eur 10 million in cash, followed by a further Eur 3.5 million in cash on 1st April 2007 and Eur 3.5 million in cash on 1st April 2008.

The acquisition is expected to be earnings enhancing in the first full year after completion.

The group has continued to make good progress with the integration of Deltron and trading remains in line with expectations.

The announcement of the Abacus Group interim results for the six month ending 31st March 2006 will be on 31st May 2006.

Commenting on the acquisition, Martin Kent, CEO of Abacus Group, said: "The fit of Axess Group with Abacus is remarkable".

"This acquisition will provide Abacus with real critical mass in France and will also add significantly to the displays capability of the group".

"It represents further evidence of the board's determination to be a major EU electronic component distributor".

Patrick Journo, CEO of Axess Technology Group, said: "I am very enthusiastic to create with the Abacus management one of the best players within our sector".

"I believe that our staff, suppliers and customers will be extremely supportive of the enlarged group".

"I am convinced that we will be hugely successful together".

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