TSE Touchstone Grp

RNS Number:4724T
Touchstone Group PLC
22 March 2007


Date:             22 March 2007

On behalf of:     Touchstone Group plc ("Touchstone" or the "Group")
Embargoed until:  0700hrs


                              Touchstone Group plc

                    Acquisition of ETC Global Solutions Ltd

Touchstone Group plc ('Touchstone' or the 'Group'), the AIM-listed provider of 
business software solutions and consultancy services, has purchased 
ETC Global Solutions Ltd ("ETC").

Total consideration is capped at #2.977m, with initial consideration of #1.072m 
payable in cash on completion. Based on the achievement of certain performance 
targets within the first 12 months deferred consideration of #1.905m will be 
payable in a combination of cash and Touchstone shares, with a maximum cash 
element of #952,500.  The initial consideration payable recognises that ETC has 
surplus cash of approximately #422,000.

Established in 1989, ETC is a 26-man Microsoft business solutions consultancy 
specialising in Microsoft Dynamics CRM, NAV and GP technologies.  ETC operates 
from offices in Amersham and is recognised by Microsoft as one of their leading 
CRM partners.  In the year to 31st May 2006 ETC had turnover of #1.5m and 
generated an operating profit of #244,000.  Net Assets of ETC at that date were 
#162,000.  Management accounts for the 9 month period to 28th February 2007 
show an operating profit of #413,000 on turnover of #1.7m.  Subject to ETC 
achieving earn-out targets, the Board anticipates that this transaction will be 
earnings enhancing in its first year.

Since incorporation, ETC has completed multiple projects with a number of 
international blue chip customers.  ETC is currently engaged in a large 
integration project with CIMA (The Chartered Institute of Management 
Accountants), an exciting Dynamics NAV, CRM and SharePoint project with APCOA 
Parking UK Ltd and numerous other large scale Microsoft CRM projects.

Keith Birch, Chief Executive of Touchstone, said:

"ETC is a well run business with a superb reputation within the Microsoft 
Dynamics community.  It has a great team and we are delighted to welcome ETC's 
directors, staff and clients to the Group."

Ian Andrews, Managing Director of ETC, said:

"This acquisition provides greater levels of sustainability and security for our
clients and excellent opportunities for our staff to benefit from being part of
a much larger Group.  Touchstone's reputation and strength combined with ETC's
skills and agility will be a formidable combination in this marketplace."


Enquiries:
Contacts    Keith Birch, Chief Executive Officer
            Touchstone Group plc                              020 7121 4700

            Samantha Robbins/Duncan McCormick
            Redleaf Communications                            020 7822 0200



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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