The consideration for the Acquisition is GBP4.1 million (IRGBP5.4 million) which will be satisfied by the issue of 1,664,684 Gladstone ordinary shares at 155p per share and by the payment of GBP1.5 million (IR£2 million) in cash. The cash element will be financed by a debt facility.
DLG enjoys an excellent reputation as a leading supplier of software localisation engineering, testing and training services to companies wishing to operate on the internet or to offer publishing material or other services on a global basis, in local language.
In the year to 30 June 2000 DLG increased turnover by 163% to GBP1.4 million and profits before tax by 2,722% to GBP228,127.
The Directors believe the Acquisition will strengthen Gladstone’s position, through its Ge.world division, as a leading provider of specialist localisation services both by broadening the range of services it can offer to its existing customers and by increasing the number of companies to whom the group provides such services.
DLG’s customer base includes Baltimore Technologies, Compaq, Corel Corporation, Ericsson Systems, Lotus Development/IBM, Netscape, Symantec and Trintech.
It is expected that the Acquisition will be earnings enhancing for the year ending 30 June 2001.
