Workspace snapped up for £41m

published 9 December 2011

WorkPlace Systems, the AIM-listed workforce management software and consulting services firm, is to be acquired by Wasp Management Software (NewCo) for 25p per share, valuing the group at £41m.

NewCo, a company backed by Lloyds TSB Development Capital, has reached an agreement with WorkPlace on the terms of a recommended cash offer for its entire issued (and to-be-issued) share capital, excluding the roll-over shares which NewCo has separately contracted to acquire from the management team, the statement said.

The price comes at a premium of 81.8% to the closing price of 13.75p yesterday.

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"I am delighted that this management buyout, backed by Lloyds Development Capital, represents an attractive offer for shareholders and protects employees and customers whilst allowing WorkPlace to move to its next stage of development," said WorkPlace chairman Ia Lenagan.

Separately, WorkPlace reported that it swung to an operating profit of £286,000 in the first half ended 30 September, up from a loss of £480,000 the year before. A profit of £125,000 was made in the second half of last year.

Meanwhile, revenue rose from £4.7m to £5.3m, while the gross margin improve by two percentage points to 90%. Earnings per share rose to 0.20p, from a loss of 0.33p the year before.

"The progress made by the company during the last twelve months in developing the SaaS solution alongside the existing On-Premise software is reflected in the half-year figures and the orders that were announced in September," the firm said.