| CATEGORY: SMALL CAPS NEWS SECTOR: SOFTWARE & COMPUTER SERVICES |
Telephonetics recommends Netcall bid |
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Tue 01 Jun 2010
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LONDON (SHARECAST) - Netcall is making a recommended bid for speech recognition and voice automation products supplier Telephonetics.
Telecoms call-back and auto-messaging software provider Netcall is offering 0.3077 of a share and 5p in cash for each Telephonetics share. Netcall is raising £4.25m at 19p a share to help finance the cash cost of the bid, which is £5.46m. Netcall had £1.9m in the bank at the end of 2009. Telephonetics had net cash of £5.1m at the end of November 2009.
Prior to the announcement the bid was valued at 9.23p a share, or £10m for the comapny.
Discussions relating to the bid started in 2009. There should be costs savings as well as a broadened product range.
Netcall already has undertakings from the owners of 57.42% of Telephonetics to vote in favour of the bid.
Telephonetics is strong in the health and public sector markets and recently agreed an extension to its MovieLine cinema ticket booking contract with Odeon. The Odeon contract lasts until 2015 and another cinema contract has been won in Ireland.
Telephonetics reported a fall in profit from £1.07m to £413,000 in the year to November 2009. This decline was a combination of lower interest income and higher costs.
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