Datum International Ltd
LSE : DATP

March 12, 2010 02:00 ET

Acquisition and Fundraising

12 March 2010
                                            DATUM INTERNATIONAL LIMITED
                                                (PLUS-quoted: DATP)
                                                         
                           Acquisition of Bristol based document & data capture company
                                   Fundraising of c. £1m (before expenses) at 6p
                                                         
Datum  International  Limited ("Datum" or the "Company"), the software company specialising  in  the  development,
supply,  implementation  and  support  of their Enterprise Content Management ("ECM")  Solution  KnowledgeWorker®,
announces  that  it  has  raised GBP 1,003,000 and acquired, conditional on payment of  the  consideration,  Root3
Limited ("Root3"), a Bristol based document capture business for an initial consideration of GBP 600,000.

About Root3
Root3  is a Bristol based business, principally engaged in the supply and development of document and data capture
software  in  the  UK.  Root3 has strong technical capabilities having developed specialist  software  surrounding
Optical Character Recognition (OCR), and has a high quality customer base including the NHS, Royal Mail, ACCA  and
the  Office  of National Statistics. Root3 is particularly strong in Accounts Payable and Invoice Processing.  For
more information on Root3 visit: www.root3.com

Financials
Turnover  for  the  year ended 30 September 2009 was GBP 1,080,000, with circa GBP 700,000 of  this  as  recurring
revenue. Following the acquisition the enlarged Company will have a significant recurring revenue stream  of  just
under  GBP  1 million. Root3 produced a profit before tax of GBP 73,000 over the same period and the gross  assets
being acquired are estimated to be GBP 525,000.

Consideration
Datum  will pay an initial consideration of GBP 600,000 with an additional contingent consideration payable of  up
to GBP 386,000 should various post acquisition targets be met. Both the initial and contingent considerations have
been  and  will be paid in a 50:50 cash share split. The number of shares to be issued as a result of the  initial
consideration  is  4,000,000 and GBP 300,000 will be payable in cash. The acquisition  will  be  financed  by  the
fundraising.

Fundraising
The  funding will raise GBP 1,003,000 (before expenses) at a price of 6 pence per share, consisting of  an  equity
placing  of GBP 906,000 and a conversion of loans by certain Directors of the Company of GBP 97,000, in  aggregate
being  16,716,666 ordinary shares, the split being 15,100,000 placing shares and 1,616,666 conversion shares.  The
purpose  of  the  Placing is to fund the initial consideration for the purchase of Root3 and  to  provide  working
capital to fund the future growth of the Company.

Commenting on the acquisition David Hornsby, CEO of Datum, said:
"This  acquisition  broadens  our product portfolio and significantly enhances Datum's  capabilities  in  the  ECM
market. Root3 is a high quality document and data capture business with a good product offering and an experienced
management  team.  The Company has a proven track record of successfully designing and implementing  complex  high
volume  document  and data capture projects for blue chip organisations. The interest from both new  and  existing
institutional shareholders demonstrates their support for our rationale behind the acquisition."

Commenting on current trading, David said:
"Datum is currently trading within management expectations and we are confident of delivering the Company's maiden
annual profit when we announce our full results for the year ending April 2010."

Enquiries:

Datum International Limited                                    Tel: 01438 347110
David Hornsby, Chief Executive                                 www.datumplc.com
                                                               
FinnCap                                                        Tel: 020 7600 1658
Marc Young / Rhydian Bankes (Corporate Finance)                
Stephen Norcross (Corporate Broking)                           
                                                               
Walbrook PR Ltd                                                Tel: 020 7933 8787 or Mob: 07980 541 893
Paul McManus                                                   paul.mcmanus@walbrookpr.com

FURTHER NOTES TO THE ACQUISITION AND FUNDRAISING:

Issue of Equity

In connection with the acquisition of Root3 Datum has issued 4,000,000 shares to the vendors of Root3, In addition
Jonathan Wearing and Les Paul (both Directors of Datum) have converted GBP84,999.96 and GBP12,000 respectively  of
loans to the Company into equity equating to 1,416,666 and 200,000 shares respectively.

Holdings of Directors and vendors following the Placing and Loan Conversion

Shareholder            Voting rights held     % voting rights held   New shares          % held of
                       over the issued        prior to Placing       subscribed for in   enlarged issued
                       share capital prior                           current placing     share capital
                       to the placing
Les Paul               6,992,140              23.19                  200,000             14.14
David Hornsby          6,000,000              19.90                  1,733,333           15.20
Jonathan Wearing       2,572,400              8.53                   1,416,666           7.84
Robert Allerston       -                      -                      2,000,000           3.93
Peter Bromley          -                      -                      1,000,000           1.97
Paul Ford              -                      -                      1,000,000           1.97

Related Party Participation

David Hornsby, Datum's Chief Executive, has taken part in the above placing acquiring 1,733,333 shares giving  him
and  his  immediate family a resultant holding of 7,733,333 voting rights over the ordinary share capital  of  the
Company  and 2.8 million options with an exercise price of 2.5p per share. This acquisition of shares has  altered
his holding of voting rights of the Company as detailed in the table above.

Related Party Debt Conversion

Jonathan  Wearing,  Datum's Chairman, has converted GBP 84,999.96 of debt previously  held  in  the  Company  into
1,416,666  new  ordinary shares at a price of 6 pence per share giving him and his immediate  family  a  resultant
holding  of 3,989,066 voting rights over the ordinary share capital of the Company. This acquisition of shares  by
conversion of debt has altered his holding of voting rights of the Company as detailed in the table above.

Les  Paul, Datum's Chief Technology Officer, has converted GBP 12,000 of debt previously held in the Company  into
200,000  new  ordinary  shares  at a price of 6 pence per share giving him and his immediate  family  a  resultant
holding  of 7,192,140 voting rights over the ordinary share capital of the Company. This acquisition of shares  by
conversion of debt has altered his holding of voting rights of the Company as detailed in the table above.

Total Voting Rights

Post  admission  of  the  Placing Shares and the Consideration Shares to PLUS, the Company  will  have  an  issued
ordinary share capital of 50,862,256 shares.




Contact Information

  • Datum International Ltd