Acquisition

RNS Number : 8795L
  
Cleardebt Group PLC
  
19 January 2009
  
 

ClearDebt Group Plc


Acquisition  


ClearDebt Group plc ('ClearDebt' or the 'Company'), the AIM-quoted consumer debt advisory, IVA and debt management group, is pleased to announce the acquisition of the business trading as 'The Debt Advice Portal' and its associated intellectual property rights from Plinthtec Limited ('Plinthtec') for a total consideration of up to £146,000. The Debt Advice Portal is being acquired by ClearDebt's subsidiary, ClearDebt Limited.


The Debt Advice Portal is a web-based system designed to allow financial intermediaries to aid the referral of cases to providers of IVAs and debt management plans. In addition, it provides intermediaries with information relating to debt solutions, industry news and marketing material. Since its launch in June 2007, 220 financial intermediaries have signed up as members of the portal. No significant income has yet been generated by the portal.  


An initial consideration of £75,000 is payable on completion of the acquisition, to be satisfied by the issue of 3,750,000 ordinary shares of 2p each in the capital of the Company (the 'Consideration Shares') at an issue price of 2p per share.


Deferred consideration of up to £71,000 is payable subject to the achievement of agreed conditions relating to the future turnover of the business being acquired and will be satisfied by the issue of up to 3,550,000 ordinary shares of 2p each in the capital of the Company ('Ordinary Shares').


ClearDebt is acquiring the Debt Advice Portal in order to use its management system to manage complex relationships with third party introducers of debt management and IVA business. In addition, the acquisition will strengthen the resources of ClearDebt in building relationships with financial intermediaries who can act as introducers of personal debt related business. 


Application will be made for the Consideration Shares to be admitted to trading on AIM and dealings are expected to commence on 23 January 2009 ('Admission'). The Consideration Shares will rank pari passu with the existing Ordinary Shares in issue and bring the number of Ordinary Shares in issue to 308,340,567.


Plinthtec has agreed not to dispose of any Consideration Shares for a period of 12 months following Admission and only to dispose of such Consideration Shares through the Company's broker for a period of 12 months thereafter. Any Ordinary Shares issued as part of the deferred consideration will be subject to equivalent lock-in and orderly market arrangements.


David Mond, CEO of ClearDebt, commented: 'This acquisition marks a further positive development in the strengthening of the ClearDebt offering. Whilst we now have a far more sophisticated product offering to indebted consumers, we have now matched this sophistication at a corporate level.


We have now successfully integrated both a debt management offering and a 3rd party introducer and contact management system into the Group, thereby diversifying our offering, allowing larger and more stable income streams. 


As UK consumer debt continues to affect many families, ClearDebt can be a trusted partner to both consumers and creditors.'




For further information, please contact:-






David Mond, ClearDebt Group plc


Tel: 0161 969 2023 or 07973 611111




David Youngman/Robin Gwyn, WH Ireland Limited


Tel: 0161 832 2174




Ruari McGirr, St. Helen's Capital Plc


Tel: 020 7628 5582







This information is provided by RNS
The company news service from the London Stock Exchange
 
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