Standard Life to take Focus for £42m
Following weeks of speculation, savings and investments giant Standard Life has reached an agreement to buy Leamington Spa-headquartered Focus Solutions for £42m. Standard Life revealed its intention to purchase the software and consultancy solutions provider to the Stock Exchange this morning. Focus also reported an upturn in revenue to £5.4m through its six-month interim results.
Edinburgh-based Standard Life has offered 140 pence in cash for each Focus Share, valuing the share capital of Focus at about £42m.
The boards of Standard Life and Focus said that they believed the acquisition will provide Focus' customers and staff with “the benefits of a strong and well-resourced owner whilst retaining the innovation and flexibility that Focus' customers have historically enjoyed”.
Standard Life Directors said that it would continue to invest in Focus' “highly rated” technology platform.
Commenting on the acquisition, David Nish, group chief executive of Standard Life, said: "The Standard Life group continues to focus on the delivery of market leading solutions and services for intermediaries and other distribution channels.
"Consistent with our previous acquisitions of Vebnet and threesixty, the acquisition of Focus therefore provides further capability in providing support, technology and innovation to our core markets and customers."
The acquisition was announced as Focus revealed its interim results for the past six months, through which revenue rose from £4.3m in the first six months of 2009 to £5.4m for the six months to 30 September 2010.
Operating profit hit £1.12m in the last six months, compared with £40,000 in the comparable 2009 period. Pre-tax profit also rose to £1.12m, up from £150,000 in 2009.
Richard Stevenson, chief executive of Focus Solutions, said: "It has been an excellent half year for the group, which has seen the organisation continue its transformation into a market leading software specialist, delivering strategic multi-channel distribution solutions to leading financial services firms.
"Our target markets both in the UK and overseas are continuing to be driven by an increasing focus on compliance and regulation and the need for financial services organisations to deliver excellent customer service.
"With focus:360° and our supporting services, we are ideally placed to address the requirements of these organisations and continue to deliver high margin, licence revenues for the group in the coming months and years.”
