DMG Information acquires Lewtan Technologies

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Thursday 2 December 2004

DMG Information, the information publishing division of DMGT, has acquired Lewtan Technologies, Inc., a market leading provider of analytics and surveillance information to the asset-backed securities market.

The initial consideration is US$34 million (£17.9 million), payable in cash, with earn-out payments up to a maximum additional amount of US$28 million (£14.7 million) payable during the next two years based on future financial performance.

The acquisition of Lewtan, which is based near Boston, U.S.A. complements and further strengthens DMG Information's portfolio of information businesses. In the year to 3 October, 2004 the adjusted operating profits of DMG Information increased by 50% to £37 million.

In its most recent financial year to 30 September 2004, Lewtan's revenues increased by 30% to US$12.8 million (£6.7 million) and at that date the company had net liabilities of US$1.3 million (£0.7 million). We expect the acquisition to be earnings enhancing before goodwill amortisation during the current year.