OneClickHR plc

11th June 2001
OneClickHR plc
acquires MicroSolve Training plc
for £363k plus Earnout

OneClickHR plc ("OneClickHR" or the "Company") the established designer and developer of human resources and personnel software announces the acquisition of the goodwill and business assets of MicroSolve Training plc ("MicroSolve").
The Directors believe the acquisition of MicroSolve will add significant value to the existing business which continues to trade in line with market expectations.

As part of their strategy to offer a range of HR (Human Resources) solutions and services the Directors of OneClickHR have been seeking acquisition opportunities which add value to their core business. Microsolve, a provider of IT training, will become the training division of the expanded group creating a business unit focused on developing the services business of OneClickHR.

MicroSolve, an accredited Microsoft Certified Partner, provides instructor-led IT training from its centres in Manchester and Edgware. It is planned to exploit opportunities to cross-sell training and services to the customers of both companies as well as selling to new customers. Many of OneClickHR's existing customers, HR managers, are also the decision makers on purchasing training services within their respective companies. OneClickHR has already built a significant training business and the Directors feel that by focusing training sales and delivery in a dedicated division it will be possible to extract more product training business from the OneClickHR customer base as well as selling other training services to existing customers. There are also opportunities to cross sell OneClickHR products into Microsolve customers, which includes clients such as Sharp UK, McDonalds Restaurants and Manchester City Council.

Initial cash consideration is £13,000 payable on completion with a further £50,000 in cash payable a year after completion. In addition 297,030 OneClickHR shares valued at £150,000 will be issued on completion to the vendors, and the Company will apply for these shares to be listed on AIM, with admission expected within the next seven days. A further £150,000 worth of shares will be issued to the vendors at a price of not less than 50.5p per share one year after completion, and the Company will seek to have these admitted to AIM at the time of issue.

Both of the existing Directors of MicroSolve will continue with the business on standard OneClickHR service contracts. In addition these Directors have each been granted options over 100,000 OneClickHR plc shares, exercisable over three years at a price of 53.5p. The Directors of Microsolve will also benefit from a bonus equivalent to 50% of the profits of the business over the three years following completion, subject to a maximum of £1.5m.

In the year ended 31st October 2000, MicroSolve's turnover was £810,088 and profit before interest and taxation was £154,239. Net assets at 31st October 2000 were £409,887.

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