IFNC Infonic

    RNS Number : 9539Z
  Infonic PLC
  28 July 2008
   

    28 July 2008


    INFONIC PLC ('Infonic' or the 'Company')

    Infonic merges its text analytics business with Lexalytics Inc.


    Infonic plc, the UK AIM-listed provider of innovative information management software, announces that it has signed an agreement to
combine its text analytics division with Lexalytics Inc., a US company based in Amherst, Massachusetts.  The text analytics divisions of
both companies will be combined in a UK company (which will be called Lexalytics Limited, "the Vehicle") which will be majority owned and
controlled by Infonic plc, Infonic owning between 70% and 75% of the issued share capital of the Vehicle (Infonic's percentage being
dependent on certain conditions) with the vendors of Lexalytics, Inc ("the Vendors") owning the balance. 

    Infonic and Lexalytics are providers of proprietary text analytics technologies, both companies' solutions automatically analysing and
summarising the underlining sentiment of large amounts of unstructured data. Their technologies have a variety of powerful applications,
such as in the financial services sector analysing at high speed the sentiment behind multiple news stories on company stocks.  Infonic's
software is being used by Thomson Reuters, Factiva and others to analyse the sentiment behind the content of data feeds.  

    Lexalytics' software is used to provide text mining and text analytics functionality to clients in the public relations, marketing,
eDiscovery, business intelligence and financial services sectors, its software being used with the solutions of a number of other providers,
such as ScoutLabs, Cisco, Smartbrief and Burrelles Information Services LLC.  Lexalytics Inc has 14 employees based in Massachusetts.  

    The rationale behind combining the businesses is to pool the expertise and the complementary products of the parties in this specialist
area and to drive joint growth in sales, utilising Infonic's global sales capabilities.  

    Infonic expects the Vehicle to make a positive contribution to Infonic's consolidated EBITDA and cash generated from operating
activities for the current financial year. 

    Infonic will retain 100% ownership of its existing Document Management and Geo-Replication software divisions, which will remain
unaffected by the changes.  

    Completion of the entire transaction is expected in the next six weeks.  

    Infonic will be releasing its interim results to 30 June 2008 in late September 2008. Trading remains satisfactory and is in line with
expectations.   

    Commenting today, Mark Thompson, Chief Executive of Infonic said: 

    "We are very pleased to be announcing this merger today. The parties have been working towards this for almost six months and feel that
our new company will comprise the most competent team in the text analytics field.  

    In Lexalytics we have found a group of people who share our passion for the power of text analytics, particularly sentiment analysis,
where we feel the new entity will be the undoubted leader.

    This merger represents the gradual maturity of our strategy to optimise the value within Infonic's three core product divisions.  

    It is important that we give our products and intellectual property the best chance of focused sales success, and deals such as this
accelerate our ability to reach target markets whilst enriching the organisation with new ideas and skills."

    Jeff Catlin, the new Managing Director of Lexalytics Limited also commented: 

    "This is a great deal for both parties. We have experienced increasing demand for our innovative sentiment solutions and combining our
corporate and PR product focus with Infonic's formidable financial sentiment engine allows us to cover a much broader customer base.

    We were also attracted to the deal due to the fact that this gives both parties much more effective coverage of Europe and North
America, as well as the added benefit of Infonic's Asia-Pacific team based out of Singapore.

    We had looked closely at several ways of growing our business which included conducting detailed negotiations with venture capital
firms, however, we feel that this gives us greater scale and market-dominance in a much shorter timeframe.  

    We are genuinely excited about what we can achieve together."


    Infonic plc will issue a further announcement on completion of the transaction.


 For further information please visit
 www.infonic.com or contact:


 Infonic plc 
 Mark Thompson, Chief Executive                     Tel: +44 (0) 1483 443000  
 Jeff Catlin, Chief Executive, Lexalytics Inc.     Tel: +1 413 253 0202

 Parkgreen Communications 
 Paul McManus                                      Tel: +44 (0) 20 7479 7933

 FinnCap 
 Geoff Nash/Rose Herbert                           Tel: +44 (0) 207 600 1658






    NOTES TO EDITORS:

    About Text Analytics:

    Text Analytics is the science of using computers to decompose and understand language.


    About Infonic plc:
    Infonic is a publicly traded company (previously named Corpora plc). Infonic is listed on the UK's AiM Stock Exchange and was created in
2000.
    Infonic's headquarters and primary software development laboratories are in the UK with sales offices in the USA and Singapore, and
sales agents in Hong Kong, Germany and Australia.
    Infonic's unique software helps global organisations capture and share business information more effectively.
    Infonic Geo-Replicator improves Microsoft SharePoint access for users at the edge of military, commercial and aid organisations. Infonic
Document Manager improves workflows for the world's largest logistics businesses. Infonic Sentiment Analysis helps power the world's largest
trading information systems.
    The company's software solutions support workers across global markets, including government, maritime, military, finance, legal,
pharmaceutical and educational organisations.
    Infonic's customers are supported by a team of experienced technical staff who ensure that our products are effectively integrated and
supported within each client's organisation.
    Infonic's Internet Intelligence division provides market leading consultancy services to blue chip companies who need to track issues or
brands online.



This information is provided by RNS
The company news service from the London Stock Exchange
 
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