Leading retail and healthcare solutions provider acquires retail specialist.

Torex PLC, the IT solution provider for health and retail markets, announces the acquisition of SWL for a maximum consideration of £7.1 million. The initial consideration of £4.1 million is payable by £2.0 million in Torex ordinary shares, £1.55 million in loan notes and £0.55 million in cash. A further amount of up to £3 million, to be satisfied by a mixture of cash, loan notes or Torex ordinary shares, is payable depending upon the profitability of SWL in the period to the end of 2002.

SWL develops and sells a range of software-based solutions which enable retailers to improve sales and operational efficiency at the store level. The company's systems provide information and real time decision making tools which allow retailers to compare customer volumes with store sales figures, improve staff scheduling and performance management and measure customer satisfaction. SWL has a number of blue chip retail customers including Tesco, Bhs, Selfridges, Woolworths and Wickes. SWL also supplies systems for other customer facing businesses such as banks and theme parks, including Barclays Bank and Alton Towers.

SWL, which is based at Alcester, Warwickshire, achieved pre tax profits of £15,000 on turnover of £1.1 million for the year ended 31 December 1999. Net assets at 31 December 1999 were £143,000. The company has some 30 employees.

Chris Moore, Chairman of Torex, commented: "SWL has achieved rapid growth in 2000 and its acquisition represents an important expansion of our Retail division. Sticking to our strategy of focusing at the store level, SWL expands the range of products and services that we can sell to our retail customers and brings some of the UK's largest retailers as new customers to Torex Retail. SWL solutions provide retailers with excellent returns on their investment. I am confident that this will create significant opportunities for cross selling to our existing Retail clients, which include Argos, WH Smith, Matalan and Monsoon. This, together with the additional sales resources that Torex can apply to SWL, will enable the business to continue its rapid and profitable growth."