The reverse takeover will surprise some people, as TripleArc made a pre-tax loss of 2.98m on sales of 7m last year.
One source described the price as amazing and questioned whether Triple Arcs print management division, gl2, would be able to step up to something the size of Access Plus, which has annual sales of more than 30m.
It looks like theyve overpaid, said the source. Suddenly people are valuing companies almost at their turnover and forget you have to make a profit.
But TripleArc chief executive Jason Cromack told PrintWeek that the companies sat well together. This is a very fair price. Brokers have forecast TripleArcs turnover will be 18m next year and that Access Plus will be 34m. There are great opportunities for shareholders from putting both businesses together in terms of growth. Im confident that well win some large contracts because well have the scale, the technology and the services.
The offer is made up of two-thirds cash, which will be financed partly through 20m of acquisition finance facilities provided by HSBC and a placement of 70m new TripleArc shares that will raise 7.9m after expenses.
TripleArc has received binding irrevocable undertakings from parties that own over 45% of shares and also has a non-binding letter of content for another 7.59%.
The deal will create the UKs fourth largest print management firm with sales of over 50m, according to Cromack. Theres been a lot of consolidation in the top three and Access Plus and Adare Carwin were at the next tier down. This offer is a comparable figure to the Communisis/Centurion deal.
Cromack said TripleArc would still be committed to technology and, although the print industry had been slow on the uptake, he was confident that interest was increasing.
Access Plus share price rose 17.5p to 200p after the takeover was announced.
Story by Rachel Barnes
