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Tern Plc : Acquisition(dpa-AFX International Compact Via Acquire Media NewsEdge) Tern Plc ("Tern" or "the Company") Tern Plc, the investing company specialising in the cloud and mobile sectors, is delighted to announce the acquisition of Cryptosoft Ltd ("Cryptosoft"), a privately held data security software company. Terms of the acquisition of Cryptosoft: · Tern will own 95 per cent. of the issued ordinary share capital of Cryptosoft; · Jon Penney, owner of Cryptosoft, receives (1,922,066) Tern shares of 0.02p ("Shares") and warrants to subscribe for a further (198,151 Shares) at 2p per Share and a second tranche of (198,151 Shares) at 4 p per Share; In addition, Tern will invest £300,000 in Cryptosoft to provide working capital to accelerate its growth Jon Penney and other employees will retain a minority 5 per cent. interest in Cryptosoft which entitles them to 25 per cent of the net proceeds of sale as and when Cryptosoft is sold. Cryptosoft had no profits or losses in the year to 31 March 2014 and its assets are £28,000 capitalised software. Immediately following completion of the acquisition, Mr Penney owns 1,922,066 ordinary shares in Tern, representing approximately 15 per cent. of Tern's enlarged issued share capital. The holding in Cryptosoft will be held as an investment by Tern plc. Background information Cryptosoft has the potential to transform the security model for the Internet of Things and Cloud by revolutionising and simplifying the processes for an organisation to install a robust, scalable and easy to use encryption service to secure the data. Cryptosoft is targeted at three main markets: Mobile Network Operators; Independent Software Vendors in the Internet of Things ecosystem; and, Enterprise customers. Following the completion of the acquisition, Tern plc director Al Sisto becomes chairman of Cryptosoft and will assist and oversee the commercial development of the business. Commenting of the acquisition Al Sisto, said: "I believe Cryptosoft offers real solutions to fast growing markets that require data security; and there are no effective competitive products. The opportunities for Cryptosoft are very significant worldwide." Jon Penney, founder, Cryptosoft said: "This transaction will strengthen Cryptosoft's sales and marketing operations, as well as finance to grow the business worldwide. I look forward to working with Tern to achieve the global potential that Cryptosoft represents." Angus Forrest, Chairman, Tern plc said: "This transaction marks the next stage of Tern's development. We plan to take significant holdings in investee companies and add our expertise and contacts to help those businesses develop and accelerate their expansion." Enquiries: Tern plc Tel: 07973 561 232 Angus Forrest WH Ireland NOMAD and Broker Tel: 0117 945 3471 John Wakefield Peterhouse Corporate Finance (Joint broker) Tel. 020 7469 0936 Lucy Williams Redleaf Polhill Tel. 020 7382 4769 Charlie Geller About Tern: Tern Plc acquires and invests in privately owned companies with self-owned IP, established products and customer bases. Its investment strategy is focused on taking an active role in its investee companies in order to improve the business model, accelerate growth, expand the business globally, and identify exit opportunities. This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Tern Plc via GlobeNewswire [HUG#1855757] BFPMV79R41 Copyright RTT News/dpa-AFX |