The Softline Group has concluded two key acquisitions with a value in excess of R20 million which fall within the Groups` objective of increasing high margin sustainable earnings, and enhance its content of proprietary technology. The Softline Group acquired 100% of Lorge & Associates (L&A), the leading international Value Added Reseller and solutions provider of ACCPAC business accounting software solutions. In the second transaction, the Group has acquired Triple S Computing, Point-of-Sale (POS) solutions developers and implementers. Both acquisitions further strengthen the Group`s strong presence in the Software and Services markets and offer strong synergies with existing group business units. These transactions are payable in a combination of cash and the issue of shares over a period and linked to profit warranties. "The acquisitions fit our stated criteria", says Ivan Epstein, Chief Executive Officer of Softline Limited. "The companies develop and implement leading edge software technology, and are dominant in their respective niche markets, with installed client bases generating recurring revenues." Epstein recently credited the group`s impressive 184% improvement in earnings per share to its strategic shift in emphasis towards the higher-margin, value-added business activities in high growth areas of the burgeoning IT industry, both locally and abroad. Lorge & Associates, founded in 1986 by Tony and Michael Lorge, is the leading international Value Added Reseller and solutions provider of the world-renowned ACCPAC software range, developed by US based Computer Associates. "More importantly" says Tony Lorge "is what we do with the software and we have been acknowledged by Computer Associates as providing the most innovative and effective add-on value from any of their 5 500 or more resellers across the world. "We are extremely proud to have been awarded the Computer Associates` ACCPAC International awards to the International Dealer of the Year in 1996 and 1997, as well as the International Developer of the Year in 1997." "Our status is further endorsed by Computer Associates` recognition of L&A as the only active ACCPAC for Windows development partner in Africa and we have developed advanced technology which complements the ACCPAC range." "With similar cultures and the ability to share respective Research and Development expertise, we look forward to being part of and contributing to the growth of the Softline Group," says Tony Lorge. L&A markets its proprietary add-on technology internationally through Computer Associates distribution channels in Australia, China, Hong Kong, Singapore, the United Kingdom and North America. Local clients include Anglo American`s Prospecting Division, SA Druggists` Medicross and Portnet`s Crosscountry Containers while most of the country`s leading banks feature in the company`s extensive client base. L&A is also strongly positioned to take advantage of Electronic Commerce opportunities where it has developed Internet applets which integrate with ACCPAC`s Electronic Commerce modules. Further to this L&A is actively providing E-Commerce solutions for its client base. "This area has the potential to substantially expand our source of recurring revenue, which already accounts for over 45% of our turnover" says Tony Lorge. In a separate transaction, the Group acquired Triple S Computing, a leading POS developer and implementer, which complements Softline`s current software and Point-of-Sale businesses, both locally and abroad. Triple S Computing markets its products to a number of large retail groups, including LA Stores, Total Sports, Scotts, Smiley`s, Boymans and Pep Stores. "Triple S will benefit from the management and expertise existing with the Group`s 60% owned Australian subsidiary Divergent Technologies, and we are confident that Divergent will further assist in strengthening Triple S Computing`s position as a leading POS solutions provider in the southern Africa market", says Ivan Epstein.