UCS dips into R100m cash reserves for acquisition

By Staff Writer for UCS Group

Johannesburg, 27 Nov 2000

Making use of its R100 million cash reserves, the JSE-listed UCS Group has acquired pharmaceutical retail software group Computerkit Systems.

The deal will be settled with a R7 million cash payment and a R10.5 million share settlement based on a R10.5 million profit warranty over three years.

Computerkit repositioned itself in 1990 as a value-added reseller of Unisolv software within the pharmaceutical retail industry.

UCS has a strong focus within the pharmaceutical industry, having already implemented SalesTracker software at pharmaceutical giant Eli Lilly.

UCS MD John Bright sees a natural fit between the companies and says the increasing regulatory demands within the pharmaceutical industry will increase demand for sophisticated software.

The company`s attributable earnings for 2000 was R32.4 million, slightly down on the previous financial year, although Bright attributed the drop to a "millennium hangover"