Oakton acquires Clickstream

Released: 13 Jul 2006

Oakton acquires Clickstream in a cash deal that will add over $6m revenue to FY2007 and take staff numbers to over 500 nationally.

Acquisition Summary

• Oakton has agreed to acquire the assets of Clickstream Pty Ltd
• Clickstream is expected to add over $6m revenue in FY2007
• Transaction to be EPS positive in FY2007
• Clickstream will add approximately 50 staff to Oakton’s Melbourne operation taking the total staff numbers to over 500 nationally
• Clickstream is a leading Melbourne based Information Management IT services business
• The acquisition establishes Oakton as a leading player in the Information Management IT services area with over 100 staff nationally providing these services
• Clickstream clients have minimal overlap with existing Oakton clients
• All Clickstream vendors will continue to work in the business moving forward
• The Clickstream business is to be fully integrated into Oakton operating model
• The cash transaction is based on a multiple of earnings payable over an earnout period
• Oakton to fund deal from working capital without impact to existing dividend payout ratio levels
• Transaction finalisation is subject to certain conditions being met by 31 July 2006

Thursday 13 July 2006: Australian end to end IT services provider, Oakton Limited [ASX:OKN] today announced the acquisition of the assets of Clickstream Pty Ltd, a Melbourne based Information Management / Data Warehousing I.T. services business.

The finalisation of the transaction is subject to certain staff and client conditions being satisfied by the 31 of July 2006.

In making the announcement, Neil Wilson, Oakton’s Managing Director said “This acquisition satisfies our key criteria for a suitable acquisition and we are delighted to have reached agreement with such a well respected and successful company. This acquisition will bolster our existing capability in the Information Management area and take our overall staff numbers beyond 500 nationally which is a major milestone for the company”

“We are pleased to have acquired relationships with tier one, well known brands that have not previously been part of Oakton’s client base”

The Clickstream staff will transfer to Oakton’s business and the principals of the business will remain in key roles to ensure the ongoing success of the client engagements and to ensure that the full integration within Oakton is successful.

Paul Holyoake, Oakton’s Executive Chairman made the following comments regarding the acquisition “After a period of three years of great organic growth it is pleasing to now supplement this momentum with an acquisition of the quality of Clickstream. This acquisition is the result of our increased focus on acquisitions and we expect to continue to actively pursue appropriate opportunities to continue to grow our business”

The principals of the Clickstream’s business said “We are very pleased to be joining a company with Oakton’s reputation. They are clearly a good match for us and together our combined scale and specialisation will allow us to expand and extend our offerings for existing and new customers”

Oakton will announce its FY2006 full year results on August 15 2006. These results, which continue the positive earnings trend of the first half, will not include any contribution from Clickstream.

Further Information

For more information, please contact:

Neil Wilson
Managing Director and CEO, Oakton Limited
Tel: +61 3 9617 0200

Clickstream was advised by Blackwood Capital Limited

About Oakton Limited: Oakton Limited is a profitable information technology company listed on the Australian Stock Exchange [ASX:OKN]. Capitalised at approximately $A256 million (July 2006), Oakton has provided Information Technology solutions for large and medium sized organisations for more than 18 years. Oakton provides a wide range of IT services centred around business systems. The services cover strategy and planning consulting, delivery services in solution design, custom software development, packaged software implementation, information management and system integration solutions. Oakton also provides a service offering to fully manage organisations’ operational systems. The company employs approximately 510 people (July 2006) including Clickstream acquisition) and has offices in Melbourne, Sydney and Brisbane.

For more information refer to www.oakton.com.au.

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