Outsourcery plc: Admission to trading on AIM

  Outsourcery plc: Admission to trading on AIM

Business Wire

LONDON -- May 22, 2013

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THIS ANNOUNCEMENT IS NOT A PROSPECTUS OR ADMISSION DOCUMENT AND DOES NOT
CONSTITUTE AN OFFER TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES.

22 May 2013

Outsourcery plc

Admission to trading on AIM

Outsourcery plc (“Outsourcery” or the “Company”), the pure-play provider of
Cloud-based IT and communications services (“ICT”), is to be admitted to AIM
with a market capitalisation of £34.6 million.

A Placing, arranged by Investec Investment Bank (“Investec”) with
institutional and other investors, has raised approximately £13 million,
before expenses. Trading in Outsourcery shares is expected to start on Friday
24 May 2013.

The business

  *Outsourcery is one of few independent pure-play Cloud Service Providers
    (“CSPs”) and is establishing market leadership in the UK
  *Outsourcery is positioned to take advantage of the systemic market shift
    in the provisioning of ICT from an “on-premise” or “managed service”
    deployment model to a Cloud-based model
  *Outsourcery provides a wide range of Cloud-based IT and communications
    services via its network of partners to both larger enterprises and SMEs.
    Outsourcery has secured commercial relationships with companies such as
    Vodafone, Virgin Media Business, BT, HP and Atos to enable these and over
    two hundred smaller partners to deliver Cloud Services to their
    end-customers
  *The Group has won a number of notable direct customer contracts, including
    Pearson plc and London Business School
  *Outsourcery works closely with its partner network to deploy its Cloud
    Services to their end-customer base

Admission details

  *Outsourcery will have a market capitalisation, at the placing price of
    110p per share, of £34.6 million on Admission
  *Placing of 11,542,642 Ordinary Shares at 110p per share to raise:

       *£11.0 million, before expenses, to fund the Group to cash flow
         break-even
       *£1.7 million, before expenses, representing the realisation of
         capitalised loans

  *Dealings are expected to commence on AIM at 8.00am, Friday 24 May 2013.
    (Ticker symbol: OUT)
  *Investec is acting as Nominated Adviser and Broker and acted as sole
    book-runner on the Placing

Key strengths

  *Outsourcery’s Cloud Services are deployed on its proprietary O-Cloud
    platform. The Directors estimate that the Group has invested approximately
    £30 million to date in developing its business and the O-Cloud platform
  *Outsourcery’s O-Cloud platform led to the Company being selected as a
    Finalist for the Microsoft Service Platform of the Year Award 2013,
    recognising the Company as one of the top three Microsoft-based Cloud
    platform service providers globally and the leader in the UK
  *Outsourcery has established itself as the UK’s leading independent CSP, as
    demonstrated by its recognition as Microsoft’s global Hosting Partner of
    the Year 2010, Microsoft’s global Dynamics Partner of the Year 2010,
    acting as a UK launch partner for Microsoft Lync and Windows Server in
    2012 and by the commercial relationships it has built
  *Outsourcery’s near-term growth will be assisted by its focus on Microsoft
    technology through Microsoft’s significant market share (95% of desktops
    worldwide), its “ground-breaking” Lync product, and its commitment to
    transition to the delivery of its applications from the cloud through
    partners such as Outsourcery
  *Outsourcery’s O-Cloud platform can also be used by customers for the
    deployment of a broad range of software applications which are not limited
    to Microsoft. Outsourcery is well positioned to deliver a wide range, if
    not all, of an organisation’s IT and unified communications requirements
    through the Cloud
  *Outsourcery’s business model is focused on subscription-based customer
    contracts, providing a growing base of recurring revenues, leveraging its
    a stable overhead cost base and low ongoing requirement for capital
    expenditure

Piers Linney, Outsourcery’s Co-CEO, said:

“We have invested in and developed a world-leading and enterprise-grade
platform for growth which was recognised earlier this week when Outsourcery
was selected as one of three finalists for Microsoft’s worldwide Server
Platform Partner of the Year 2013 award.

“We aim to exploit the opportunities we are seeing at this exciting time in
our development and see this fundraising as a great endorsement of our
business model, technology platform and growth prospects. The funds will
enable us to continue to grow rapidly, support the development of our
portfolio of unique products and provide the financial resources to help us
scale our business and our leading market position.”

Terms used in this announcement have the same meanings as those defined in the
Admission Document.

Contact:

Enquiries:
Outsourcery
Piers Linney, Co-CEO
Simon Newton, Co-CEO
+44 (0)330 313 0077
or
Investec
Andrew Pinder/Patrick Robb
Dominic Emery/Carlton Nelson
+44 (0) 20 7597 5100
or
College Hill
Adrian Duffield/Rozi Morris
+44 (0) 20 7457 2020