Parity Group plc Acquisition of Inition Limited
Parity, the UK IT services group, is pleased to announce today that it has acquired Inition Limited ("Inition"), a leading-edge 3D technology business based in Shoreditch, London. The acquisition enhances Parity's emerging technology capabilities and is the first step in implementing the Group's stated strategy to move into the expanding digital media market.
Inition is a leading independent 3D technology consultant, systems integrator and equipment provider with particular skills in 3D printing, stereoscopic 3D video production and cutting edge, interactive 3D and augmented reality (AR) projects.
Inition was founded in 2001 by four computer science graduates, Jim Gant, Stuart Cupit, Andrew Millns and Chris Sutton (who left the company in 2005). Following the acquisition, Jim, Stuart and Andrew will continue to run the business.
Parity Digital Solutions Limited, a wholly owned subsidiary of Parity, has acquired the entire issued and to be issued share capital of Inition for an initial consideration of £2.25 million, satisfied as to £1.5 million in cash on completion and as to £0.75 million by the issue of 3,031,527 new ordinary shares in Parity (representing an issue price per ordinary share of 24.74 pence, being the average of closing mid-market share price of the Company over the 30 previous trading days before completion).
Additional cash consideration of up to £1 million may become payable depending on the ongoing performance of Inition up to 31st March 2014 (an earn-out of £0.5 million is payable to the vendors if Inition makes at least £0.3 million profit before interest and tax in the year to 31st March 2013, and a further £0.5 million is payable if Inition makes a profit before interest and tax of at least £0.5 million in the following year).
For the financial year ending 31st March 2012, the Board of Inition expects turnover of £2.64 million, profit before tax of £0.06 million and gross assets at year end of £0.92m.
The acquisition is expected to be earnings enhancing in the Group's financial year to 31st December 2012.
Parity CEO, Paul Davies, said: "We are delighted to bring this well-known Shoreditch based centre for the latest 3D technology into our Group. Inition will significantly strengthen our emerging technology skill base and market position, and we are particularly pleased that its directors are taking significant holdings in our Group as part of the consideration, reflecting our joint enthusiasm for Parity's prospects in this growing market."
Inition's, Jim Gant, said: "We are excited by the opportunity to grow Inition with the greater resources that being a part of Parity Group will give us and we very much look forward to being part of their new digital strategy."