LONDON, Nov. 18, 2002 (PRIMEZONE) -- lastminute.com plc (Nasdaq:LMIN) (LSE:LMC):
Introduction
lastminute.com plc today announces the purchase of eXhilaration, a leading provider of experiences to both individual and corporate customers. Initial consideration of 1.0 million pounds will be satisfied by the issue of 955,110 new ordinary shares in lastminute.com plc.
Highlights of the transaction
-- strong existing supplier of product to lastminute.com -- adds materially to the existing lastminute.com lifestyle categories. Examples of the experiences sold by eXhilaration are hot air ballooning, flying lessons, travel on the Orient Express and a day at a health spa -- capable of significant international and U.K. growth -- profitable and cash generative earning gross margins of over 30%
eXhilaration was founded in 1998 by the present owners and has grown sales strongly since that point to approximately 1.0 million pounds for the year to March 31, 2002. The business is profitable and cash generative.
Tim and Nicky Homer, the original founders, will remain with the business to ensure the delivery of substantial growth during the next three years.
In addition to the initial consideration, lastminute.com will pay a maximum deferred amount of 2.0 million pounds, dependent on the delivery of material growth for the year to March 31, 2005. The deferred consideration may be satisfied either in new shares or loan notes at the option of lastminute.com
The 955,110 new shares in lastminute.com to be issued as initial consideration are subject to various lock-up provisions for up to 12 months from completion.
Application has been made to the U.K. Listing Authority and The London Stock Exchange for the new Ordinary Shares to be admitted to the Official List. Trading on the London Stock Exchange's market for listed securities (Admission) will become effective from 8:00 a.m. on November 20, 2002 and dealings will commence at that time.
Brent Hoberman, Chief Executive of lastminute.com said: "I am delighted that Tim, Nicky and their team have agreed to join lastminute.com. The advent of dynamic packaging will enable us to sell experiences even more strongly when we can offer a flight, a hotel and an experience all in the same shopping basket."