OREANDA-NEWS. Kainos Group plc (KNOS), a leading UK-based provider of IT, consulting and software solutions, announces that on 18 Dec 2015 it completed the disposal of its investment in SpeechStorm Limited ("SpeechStorm") for an initial consideration of £2.0 million.  Greeneden UK Acquisition Company Limited acquired the entire share capital of SpeechStorm.

SpeechStorm is a provider of self-service and mobile apps that reduce telephone call waiting time for customers and reduce call handling time in contact centres. SpeechStorm's Personalization Platform provides voice and visual IVR, self-service, PCI Payments and Mobile eXperience applications for customers.

Kainos held ordinary shares, warrants and loans ("Kainos' Interest") in SpeechStorm and all shares were acquired, warrants converted and loans repaid.  SpeechStorm was previously a wholly-owned subsidiary of Kainos Software Ltd. until 2010 when the management team undertook an MBO backed by Crescent Capital LLP.  Kainos divested a majority stake in the business in order to concentrate on growth opportunities for core Kainos service offerings.  Since that date Kainos has had no operational involvement in the business.

SpeechStorm has delivered significant growth since 2010 and is experiencing strong demand for its product suite from its expanding global client base.  In the year to 31 March 2015 SpeechStorm reported revenues of £2.3 million.

The consideration for the Company's interest in SpeechStorm is entirely in cash with an initial consideration and one-off gain of £2.0 million which will be recognised in the second half of the current financial year as an Exceptional Item. A further small consideration will be retained in escrow and will be payable at a later stage, subject to certain conditions being met.

Commenting on the disposal, Brendan Mooney, CEO of Kainos, said: "SpeechStorm is an excellent example of a company that has been created using the Group's technology expertise.  Our focus is on the most profitable areas of the business where we are seeing the greatest demand from our customers, and now is the right time to realise the value that we have built in SpeechStorm."

About Kainos

Kainos is a UK-based provider of IT services, consulting and software solutions. The Group specialises across multiple sectors in the development of digital technology solutions, including software design and agile software development.  The company's Evolve Electronic Medical Records (EMR) product provides a market-leading comprehensive suite of digital services to healthcare providers such as hospitals and community care organisations. Kainos has also developed an automated testing product, Smart, to complement its Workday implementation services.

Kainos Group plc (KNOS) is listed on the main market of the London Stock Exchange.  At 30 September 2015, it had almost 800 staff working in eight offices in the USA, UK, Ireland, Poland and the Netherlands.