Tribal Group PLC Acquisition (5106H)
June 08 2017 - 1:00AM
UK Regulatory
TIDMTRB
RNS Number : 5106H
Tribal Group PLC
08 June 2017
08 June 2017
Tribal Group plc ("Tribal")
Acquisition of private social network Intellectual Property for
education markets
Tribal Group plc is pleased to announce that it has acquired
from Wambiz Limited the Intellectual Property Rights ("IPR") and
exclusive distribution rights for the Wambiz private social network
solution to the education markets across the UK, Australia and New
Zealand. Tribal will also have the non-exclusive rights to sell the
solution into Canada.
The acquisition is an important step in Tribal's product
strategy, delivering a social network solution that will be
integrated into its new student information framework, driving a
single engagement solution for students.
The initial consideration for the acquisition is GBP1.25m, with
further non-contingent consideration of GBP289k and GBP485k payable
at the end of years 1 and 2 respectively.
Completely at Tribal's discretion, if in years 2 to 5 Tribal
decides to sell this product into schools and work based learning
customers, Tribal will have to pay away 30% of net revenue from
these markets to Wambiz Limited. In years 4 and 5 this pay away is
capped at GBP625k and GBP525k respectively.
Wambiz Limited will be novating 34 existing customer contracts
to Tribal. The asset value of these contracts and the IPR to be
included in Tribal's accounts is expected to be approximately
GBP2m. Tribal cannot accurately calculate the profit attributable
to the contracts as Wambiz Limited did not allocate cost per
contract.
Barbara Staruk, Managing Director Product and Development,
Tribal, said:
"We are pleased to be able to fully integrate the Wambiz
solution, which is already proven at education institutes in both
Higher and Further Education, into our new Student Information
framework and look to providing our customers with exceptional
support and even more innovative solutions as we move forward."
- ends -
For further information please contact:
Tribal Group plc Tel: 0117 311 5293
Ian Bowles, Chief Executive
Mark Pickett, Chief
Financial Officer
Weber Shandwick Financial Tel: 020 7067 0700
Nick Oborne
Tom Jenkins
Investec Bank plc Tel: 020 7597 5970
Rowena Murray
Sara Hale
Daniel Adams
N+1 Singer Capital Markets Tel: 0207 496 3000
Limited
Shaun Dobson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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