RNS Number : 2299N
04 September 2013
For Immediate release
4 September 2013
@UK PLC (AIM:ATUK.L), the cloud eCommerce marketplace, is pleased to announce that Tungsten Corporation plc ("Tungsten") has signed a five year agreement to license @UK's Spend Analysis software, branded as "TungstenAnalytics", contingent upon the successful flotation of Tungsten on the AIM market of the London Stock Exchange, which Tungsten expects to take place in October 2013.
Under the terms of the license agreement, and subject to the flotation of Tungsten on the AIM market of the London Stock Exchange becoming effective, @UK will receive up front establishment fees and installation costs, together not expected to be greater than £0.5m. The total maximum value to @UK over the initial five year period is £3.4m.
Tungsten has conditionally agreed to acquire OB10 Limited ("OB10"), a leading global business-to-business e-invoicing platform, with a network of 122 buyers and 140,000 suppliers (of which 77,939 were active in the past 12 months), providing a large line-level item global data set. Under the five year rolling license agreement, @UK's Spend Analysis software will enable "TungstenAnalytics" to be delivered across this global network.
An analysis by TungstenAnalytics of an anonymous sample of UK invoice data identified potential cost savings related to price variance of 1% of total spend; it is believed that a price benchmarking exercise could produce further savings of up to 4%.
Edmund Truell, Group CEO of Tungsten Corporation plc, commented, "We have an exciting opportunity to create a disruptive global player, by enhancing the offering of OB10's leading global e-invoicing network which already serves a number of the world's largest corporates and governments. In addition, we believe that TungstenAnalytics can provide considerable savings for buyers on the platform from which we would expect to benefit."
Ronald Duncan, Chairman of @UK plc, commented, "Tungsten carried out extensive market testing and our unique ability to rapidly analyse complex data down to line item level and immediately provide significant savings to our customers was fully proven. We look forward to working with Tungsten to deliver the benefits of TungstenAnalytics to the Tungsten customer base and our wider value proposition."
Ronald Duncan, Chairman
Tel: 0118 963 7000
Westhouse Securities Limited
Tom Griffiths/ Richard Johnson
Tel: 020 7601 6100
Caroline Evans-Jones/ Alex White
Tel: 020 7653 9850
Tungsten Corporation plc was founded by Edmund Truell and Danny Truell to identify and acquire a company, business or asset within the financial services sector which it can grow into a business with a significant market presence in a segment with potential for sustainable long-term cash generation, return on equity and growth.
Tungsten has today announced i) the conditional acquisition of OB10; ii) that it has signed a 5 year rolling licence agreement with @UK; iii) its agreement (subject to appropriate regulatory approvals) to acquire an identified fully authorised UK bank, whose assets solely comprise short term UK gilts and / or certificates of deposit (the "Bank") to specialise in the provision of supply chain financing; and iv) its intention to seek admission to trading on the AIM market of the London Stock Exchange.
Tungsten's license agreement with @UK will become live upon successful admission to trading on the AIM market of the London Stock Exchange becoming effective in accordance with the AIM Rules.
OB10 is a leading global e-invoicing network headquartered in London, UK, with offices in Europe, North America and Asia Pacific. The network hosts 122 large corporate and governmental buyers on its global network, servicing over 140,000 registered suppliers of which 77,939 were active. The network serves a number of the Fortune 500 and FTSE 100 with clients such as Kraft, Unilever, Motorola, HP, GSK, Pfizer, BP and Tesco, processing over £100 billion in invoice transaction value in the 12 months to 30 April 2013. Since it was founded in 2000, approximately £50 million has been invested in developing OB10's trusted, flexible and scalable hosted cloud network. OB10 is partnered with seven of the top ten Finance & Accounting Business Process Outsourcing (F&A BPO) leaders as rated by Gartner.
@UK is Europe's leading transactional Cloud Platform with over 1 million users. The platform supports B2B eCommerce and eProcurement across a range of public and private sector organisations providing a secure, controlled transactional environment for B2B trading. The technology is unique in the B2B market, in that it delivers the B2C internet shopping experience in a business environment. The platform has been rebranded to cloudBuy.com for global expansion with Visa and partner banks. The platform is PCI DSS accredited, providing secure, integrated financial transactional capability, delivering savings to both the buyer and the supplier through greater accounts payables accuracy, reduction of manual processes and elimination of paper. @UK also provides SpendInsight developed to recognize, match and classify products and services, providing buyers with greater visibility to spend data, and supports the identification of cashable savings, through unique product level matching artificial intelligence.
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