Acquisition of Genscape by DMG Information |
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Louisville, KY, Thursday June 22, 2006 - DMG Information (DMGI), the information publishing division of DMGT, has reached agreement to acquire Genscape, Inc., the provider of real-time energy generation and transmission information to the energy trading markets in North America and Europe. The transaction is conditional upon clearance by the U.S. anti-trust authorities. The initial consideration will be US$130 million (£73 million), payable in cash, with additional payments up to a maximum of US$66 million (£37 million) payable between 2008 and 2011 based on future financial performance. Genscape, which is based in Louisville, Kentucky, U.S.A. has grown strongly since it started offering services in 2001 to international energy trading markets which have themselves expanded rapidly as a consequence of deregulation over the last several years. Genscape currently has over 130 customers, including utilities, investment banks, energy traders and hedge funds providing them with critical, real-time energy generation and transmission information utilizing proprietary technology to generate data about power plant usage and supply availability. In the most recent financial year to December 31, 2005, Genscape’s revenues increased by 76% to US$13 million (£7 million) and at that date the company had net assets of US$11 million (£6 million). We expect the transaction to be earnings enhancing from the date of acquisition. The acquisition is consistent with DMGI’s strategy of investing in high growth businesses that offer mission critical information and analytics to niche markets.
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