Mergers, Acquisitions and Financial Results

Software and information technology group Cyberhost is to acquire 100% effective shareholding in hospitality group Top Restaurants and Intranet from Queensgate Leisure Holdings.

Cyberhost said last week the purchase would provide it with access to web-based software specific to the restaurant industry through Intranet's management information system, which allows management to access restaurant information through the internet.

The simultaneous purchase of Top Restaurants, a holding company for 21 restaurants and four franchised operations, will provide an initial client base.

Management information and control over the operations are exercised through the Intranet information technology platform.

Brands owned by Top Restaurants include the Famous Butchers Grill, Upstairs Asian Fusion, Amici's, The Cape Fish Company and RJ's.

The purchase consideration for Top Restaurants is R60,3m and Intranet is R950000.

Cyberhost said the rationale for the purchase was to create a captive client base for the group's internet and web-hosting products and to diversify its operations into the leisure industry.

The company announced the acquisition along with its financial results for the year to June.

Cyberhost has regained its solvent position after completing a formal settlement with its creditors.

It reported revenue of R70m, from R2m for the 18 months ended June 2004. Headline earnings a share were 0,10c a share, up from last year's headline loss of 0.26c a share. No dividend was declared.

Business Day