Strategic Acquisition of Clunk Click Ltd, a Leader in Online Backup and Data Storage.
Risc Group is continuing its international expansion into the United Kingdom, a market which has one of the highest potentials in Europe for companies targeting the 1.6 million Very Small Enterprises (VSE) and Small to Medium Enterprises (SME) who are historically receptive to outsourcing IT services.
 |
 |
1. Acquisition of Clunk Click, the leader in VSE-SME online backup and data storage
Risc Group has established itself in the UK through the acquisition of Clunk Click, which will become another link in the European network of Risc Group's VSE-SME division.
Clunk Click was created in 2001 by its majority shareholder and Managing Director, Paul Roberts with an initial positioning targeted at VSE-SME's, concentrating on an online backup and data storage offering. The company developed through a value added offering that, has ensured very high recurring revenue.
Clunk Click is based in Conwy, Wales and has an office in Milton Keynes and data centres in Manchester.
Clunk Click’s 3,000 customers were acquired via a mixed distribution model: 50% in direct sales and 50% indirectly through resellers.
Over its previous financial year 2007/2008 (ended 28/02/2008), Clunk Click recorded a turnover of €1.1m with an operating profit of 9%.
Over the current 2008/2009 financial year, the business objective is for €2-2.4m. This rise is due in to the increased importance of recurring income, which has been confirmed over the first few months of sales made this new financial year.
Clunk Click may also rely on the income generated by a 3-year master contract signed with the ZEN Internet company, one of the leading ISP's (Internet Service Providers) in UK.
Risc Group acquired 100% of Clunk Click for £2.5m, paid in cash. Price premiums totalling £1.3m may be paid depending on the business achieved and the operating result obtained over the coming 24 months.
Managing Director Paul Roberts, and his team (11 staff to date) will join the Risc Group workforce and contribute to its development on British soil.
|
|
2. launch of Risc Security business on the British market
With this acquisition, Risc Group will rely on the expertise of its new subsidiary to launch Risc Security in UK.
Risc Group will start marketing its leading-edge offer, Risc BOX from September 2008, to take advantage of the market's distinct interest in this mobility and security offer designed for British VSE-SME's.
A business development team from Risc Group is currently finalising the establishment of this business and in particular the recruitment of some ten co-workers.
This approach will be in synergy with Clunk Click's team, which will concentrate on the sales rollout of online backup and data storage offerings.
Loïc Pequignot, Chairman of Risc Group, commented:
"We are delighted to finalise this acquisition and to welcome the teams from Clunk Click to Risc Group.
After a detailed study of the British market, we deemed that it was more relevant to attack this already mature market via acquisition rather than the launch of a new subsidiary, as in Spain or in Switzerland.
To this end, as the British market is made up of many medium-sized companies, Clunk Click quickly emerged as the ideal structure, due to its positioning and approach to market, as well as the professional qualities and skills of its team.
Paul Roberts and his staff have built the solid foundations of an extremely virtuous recurring economic model around a very strong brand which is already widely recognised in UK. We will provide them with the financial, technical and human resources to speed up the economic development of Clunk Click and that of Risc Group on the British market.
"This transaction is part of our international development strategy which aims to reach the objective of €200m made outside France by the end of 2011."
Paul Roberts, Managing Director of Clunk Click commented:
“We are all extremely excited by this development. Over the last decade Risc Group has shown an uncanny ability to create a tremendously successful and talented management team with inspiring and profitable results. Indeed, one of the most important factors in agreeing to this acquisition was the prospect of working with this team and the compassion they show to their customers, suppliers, employees and other stakeholders. Both companies have developed through a culture of exceeding customers’ and suppliers expectations.”
|
|
About Risc Group
Risc Group is the only Global Managed Service Provider in Europe, "a one-stop shop" for IT and mobility security and services to companies.
Listed on the Euronext Paris stock market in compartment C, Risc Group is a limited company with corporate capital of €36,604,578.50.
Risc Group's objectives are to provide their customers with services in terms of mobility, backup, network protection, video-surveillance, information management, telecommunications and hosted applications and to support them on a day-to-day basis with teams close by.
Risc Group distributes its managed services in direct sales mode and in indirect sales mode via two divisions:
- an SME-Major Accounts division (Ornis / Backup Avenue / monDSI), dedicated to companies with over 100 IT workstations;
- a VSE-SME division (Risc Security / BESDI / Itemos) dedicated to companies with between 5 and 100 IT workstations.
Risc Group's 30,000 customers are VSEs, SMEs, MAJOR ACCOUNTS, local government bodies and self-employed professionals, from all business sectors.
Risc Group made sales of €39.2m over the 2006/2007 financial year. Risc Group employs 480 people and its network includes 24 offices in 5 countries (France, Germany, Switzerland, Belgium and Spain).
ISIN code: FR0010542647 | MNEMO code: RSC
Websites: www.risc-group.com | www.clunkclick.net
_____________________________________Conwy, North Wales, 2nd July 2008
|
|
Press Contacts
Clunk Click Ltd
Kirsch Bowker, kirschbowker@clunkclick.net
Tel: +44(0)1 492 596 807
ACTUS
Investor & Shareholder Relations
Corinne Haury, chaury@actus.fr
Tel: +33 (0) 1 53 6 07 657
Eric Levasseur, elevasseur@actus.fr
Tel: +33 (0) 1 53 67 36 36
