Tax Systems : Computer Systems Ltd Acquired

Tax Computer Systems now Tax Systems plc.

26th July 2016, Tax Computer Systems Ltd has been acquired and is now listed on the AIM stock exchange under the ticker 'TAX'. The organisation will now be known as Tax Systems plc.

Admission to AIM and First Day of Dealings

As of 26th July 2016, Tax Systems (formerly known as Eco City Vehicles plc) is pleased to announce the commencement of dealings in its ordinary shares at 8.00 a.m. on AIM under the ticker 'TAX' following the reverse takeover of Tax Computer Systems Limited ('TCS').

Tax Systems is leading corporation tax software business with a blue chip customer base including 43 of the FTSE 100 and 19 of top 20 UK accountancy firms.

It has been established for over 25 years with £12.8 million revenue (90% recurring) and 52% EBITDA margin in 2015.

Gavin Lyons, partner at MXC Capital Limited has been appointed Executive Chairman. There is the opportunity to invest further in the platform and team, accelerate organic growth and seek complementary acquisitions.

The Company raised £45 million to part fund the acquisition of TCS by way of an oversubscribed placing of new ordinary shares at 67 pence per share. New debt facilities of £30 million comprising £9 million term loan and £11 million revolving credit facility with HSBC Bank plc in addition to £10 million unsecured loan notes issued to the Business Growth Fund plc.

Gavin Lyons, Executive Chairman said:
'I am delighted that the acquisition of TCS has been completed and I'd like to welcome our new shareholders. Tax Systems has a particularly strong position in its market, established over many years. I believe that there is an exciting opportunity to build on the core platform of the business whilst continuing to support our valued customer base. We will invest in the team and the product as well as complementary acquisitions as we seek to increase returns to our shareholders'.