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CMS Cameron McKenna LLP has acted as solicitors to Conchango on its acquisition by Harrier Group PLC and as solicitors to the enlarged Harrier Group on a placing of shares and its admission to the Alternative Investment Market of the London Stock Exchange. The transaction is a reverse takeover and Harrier is to be renamed Conchango PLC.
Conchango is a growing business consultancy and systems integrator which specialises in innovative technology. Conchango has been a client of the firm for many years.
Harrier has conditionally agreed to purchase Conchango for an aggregate consideration of up to £31.1 million, of which £1.5 million is to be paid in cash from Harrier’s existing resources and £29.6 million is to be satisfied by the issue of shares in Harrier.
The acquisition constitutes a “reverse takeover” and requires Harrier shareholder approval, which is being sought at an extraordinary general meeting on 14 January 2008. Shareholder approval is also required to approve the waiver that has been granted by the Takeover Panel to Conchango shareholders of the obligation that they would otherwise have to make a takeover offer for Harrier under Rule 9 of the Takeover Code.
The Conchango business was founded in 1991 by Michael Altendorf and Richard Thwaite. Conchango’s founding strategy was to provide high quality, independent advice on complex business technology solutions to large companies.
Conchango developed steadily during the 1990s, weathered the technology crash during 2001/2002 and has grown rapidly again over the past three years. From 2004 to 2006, the business has achieved revenue growth of 106 per cent and profit before tax has increased by 260 per cent. This growth has been entirely funded by internal cashflow.
Conchango is an acknowledged market leader and has an excellent track record in client and staff retention. Notably Conchango has a broad client base formed of some of the largest enterprises in each of its target sectors.
The CMS Cameron McKenna team included corporate partner Peter Smith and senior associate Helen Johnson and share schemes partner Nicholas Stretch and associate Isabel Pooley. |