BT swoops for software firm NSB

Published on Friday 19 December 2003 00:00

TELECOMS giant BT today signed a deal to acquire the UK operations of retail software developer NSB for £17 million.

BT will become the exclusive distributor of NSB’s products in the UK and Ireland under the deal, which will see 148 NSB staff transfer to the former telecoms monopoly.

NSB’s UK business provides professional software and systems integration services to many of the UK’s leading retailers, including Woolworths and Bhs.

The firm develops point-of-sales systems for the processing of transactions and sells business analysis, planning and optimisation tools used in retailers’ merchandising, planning, sourcing and customer relationship management processes.

Under the deal, the business acquired from NSB will be run under a new division called BTExpedite.

Pierre Danon, chief executive of BT Retail, said: "This acquisition demonstrates BT’s commitment to the retail market and to information and communication technology.

"BTExpedite will enable us to deliver a broad range of integrated professional and communications services, tailored specifically for retail customers."

NSB was founded by chief executive Nikki Beckett in 1995 after she spotted a gap in the market for software systems developed specifically for the retail market.

The firm floated on the Alternative Investment Market in 1997, moving to a full listing two years later.

Ms Beckett said today: "We are delighted to be able to strengthen our position in the important UK market and gain enhanced access to the European market through this strategic relationship with BT.

"BT is committed to the retail sector and to our customers and employees. The consideration from this transaction will also strengthen our balance sheet."

She said the majority of the proceeds will be used to pay down debt, and the deal will allow the firm to focus its resources on software development and on its North American markets.

NSB’s UK business generated a pre-tax profit of 3.3m in the six months to the end of June, on revenues of 11m.

Ten per cent of the purchase price, or 1.7m, will be retained to be paid out depending on certain performance criteria being met.