Advanced Computer Software Plc

('ACS' or 'the Company')

     

Update on BSG Strategic Review 

Advanced Computer Software Plc (AIM: ASW), a leading provider of software and IT services to the Primary Care sector, announces the results so far of its strategic review of Business Systems Group Holdings Plc ('BSG'), which was acquired on 12 June 2009 (via declaration of an unconditional offer).

ACS has agreed to outsource its infrastructure resale business effective from 1 July 2009 to BT Engage IT Limited ('BT Engage IT').  The agreement allows BSG customers to benefit from greater scale, breadth of portfolio and efficiencies of BT Engage IT, while continuing to enjoy the highly focused services delivered by BSG.  Under the agreement BSG will continue to provide IT services to the shared customers while BT Engage IT will meet their hardware requirements. BSG, as part of the ACS group, will now concentrate on the core business of providing managed services and solutions and of supporting the roll out of new ACS's health care product offerings.

Under the terms of the partnership agreement with BT Engage IT, BSG will receive a percentage of the gross margin achieved by BT each year for three years subject to a minimum of £0.5m per annum and 26 BSG employees will be transferred to BT Engage IT.  The proceeds will be used by ACS to pursue its growth strategy. 

The infrastructure business contributed £1.1m to overheads of  the BSG group in the year to 31 March 2008.

Vin Murria, CEO ACS said 

'We have undertaken a strategic review of the entire BSG business as we said when we announced the BSG acquisition. This review quickly identified that BSG's core businesses of managed services and solutions will support ACS' long term strategy of organic and acquisition growth but that the infrastructure business is better served through a partnership with BT Engage IT.  This agreement allows us to continue focusing on the growth of managed services whilst still supporting customers in their infrastructure needs.'

Enquiries:

Advanced Computer Software Plc
Vin Murria, Chief Executive Officer                    +44 20 7831 5088
Karen Bach, Chief Financial Officer

Seymour Pierce Ltd

Richard Feigen                                                  +44 207 107 8047

Sarah Jacobs
Christopher Wren

College Hill
Adrian Duffield                                                    +44 20 7457 2815

Carl Franklin