Resolution of Claim on Escrow Amount (4423S)
21 Novembre 2011 - 10:38AM
UK Regulatory
TIDMESG
RNS Number : 4423S
eServGlobal Limited
21 November 2011
eServGlobal Limited (eServGlobal or the "Company")
Notification of Resolution of Claim on Escrow Amount
21 November2011
Settlement with Oracle
eServGlobal (ASX:ESV, AIM:ESG), a global provider of Mobile
Money and Value Added Services, today announces the full resolution
of the claim made on the escrow amount relating to the sale of its
USP business to Oracle Corporation Australia. As part of the
resolution, Oracle will release the full A$11.5M claim to
eServGlobal and eServGlobal has agreed to pay for services
delivered by Oracle as provisioned for by the Company in its FY2011
financial accounts.
During 2010, eServGlobal sold its USP business and assets to
Oracle for A$106.7M prior to purchase price adjustments of A$3.6M.
The Company received an initial payment of A$79.4M with the balance
of A$23.6M held in an interest-bearing escrow account. A$11.8M
excluding accrued interest was due to be released from escrow on
the first anniversary of the completion date, with the remainder to
be released after the second anniversary. Prior to the release date
for the first escrow amount, a claim of A$11.5M was made by Oracle.
Funds not covered by the claim were released as per the original
terms of the sale.
On 20 November 2011, both parties entered into a joint
Settlement Agreement and release. The Agreement fully settles the
claims without any admission of liability from either party.
Moreover, the Agreement will operate as a bar to all further claims
arising out of or related to the Dispute.
The terms of the Agreement are confidential; however,
eServGlobal will receive the full first year's escrow disbursement
and associated interest. As provided for in the FY2011 financial
statements, the Company will pay Oracle for services rendered. The
settlement reached is for an amount lower than the provisions made
by the Company in the financial year ending June 30 2011.
Oracle and eServGlobal have been partners for many years, and
this long-standing relationship enabled the two organizations to
amicably resolve the dispute without the need for a formal legal
procedure. Both companies are pleased with the settlement and
continue to work well together in the support of common clients and
in the pursuit of new business together. Their shared priority is
to continue to deliver outstanding service to their clients now and
in the years to come.
About eServGlobal
eServGlobal Limited specializes in Mobile Money solutions and
Value-Added Services (VAS), to help Mobile Service Providers
increase their revenue and gain and maintain customer ownership.
eServGlobal invests heavily in product development, using
carrier-grade, next-generation technology and aligning with the
requirements of more than 75 customers in over 45 countries.
For more than 25 years mobile, fixed, Internet and telecom
providers have used eServGlobal solutions to lead and innovate in
their local markets, leveraging their core assets and their trusted
agent and subscriber relationships.
With 13 offices globally, eServGlobal provides full "end-to-end"
and "any account to any account" Mobile Money Services and
International Remittance Services. eServGlobal's HomeSend solution
is the only mobile-centric international remittance hub to gain
endorsement from the GSM Association.
eServGlobal's Value-Added Services in promotions, loyalty and
messaging enable service providers to engage with their subscribers
in a personalized and dynamic manner.
To reduce time-to market and to meet the needs of operators and
banks, eServGlobal provides multiple licensing alternatives as well
as SaaS-based products and services.
eServGlobal is listed on the Australian Securities Exchange
(ESV) and the London Stock Exchange AIM (ESG). More information at:
www.eservglobal.com
For further information, please contact:
eServGlobal www.eservglobal.com
Tom Rowe, Company Secretary T: +61 (0)7 3302 0194
Info@eservglobal.com
Cenkfaos Securities plc www.cenkos.com
IvonneCantu/Stephen Keys (Nomad) T: +44 (0) 20 7397 8980
Threadneedle Communications www.threadneedlepr.co.uk
Caroline Evans--Jones/Josh Royston/Hilary T: +44 (0) 20 7653 9850
Millar
This information is provided by RNS
The company news service from the London Stock Exchange
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