Standard Life agrees £42m Focus buy

7th Dec 2010 07:35

Standard Life has agreed to buy pensions and life product back office software group Focus Solutions through a £42m, 140p per share, all cash offer.The life group says the purchase is part of its strategy broadly to double its growth investment in 2010 and will improve its suite of solutions and services for financial intermediaries and other distribution channels."By integrating Focus' solutions with its existing platform Standard Life will seek to provide a full service Wrap and increase third party assets managed on the Standard Life platform; it is expected that Standard Life's capability, already enhanced through the purchases of threesixty and Vebnet, will allow the acceleration of access to its target markets," Standard said.The offer price is 33% premium to the price on the day before bid talks started and has been accepted by the directors of Focus, who speak for approximately 57.4% of the shares.Focus Solutions made a profit before tax of £1.12m in the six months ended 30 September, up from £0.15m the year before. Earnings before interest, tax, depreciation, amortisation and exceptional costs surged to £1.59m from £0.55m th year before on total revenues that grew to £5.43m from £4.30m.