Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Sale to FI Group nets millions for OSI founders

Clifford German
Friday 21 May 1999 00:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A DOZEN SENIOR executives at OSI Group, a privately owned business consulting and management support services company, became instant millionaires yesterday after selling out to the IT specialists, FI Group, for pounds 106m in cash and shares.

They include chief executive Fred Evans and David Demetrius, and the marketing expert Harvey Parr, the two founders, who own 15 per cent of OSI. They are retiring and taking mainly cash.

Another 10 members of the core management - who own 45 per cent of the equity - are staying with the enlarged group and taking mainly shares, which they have undertaken not to sell for two years. The 380 members of staff own a further 18 per cent of the shares and all staff are being offered additional options equivalent to one year's salary, which can be exercised and cashed, or rolled over into FI options. More than 40 per cent of the enlarged group will be owned by the executives and employees.

ECI Ventures will cash in most of its 20 per cent stake but retain some FI shares. The cash element of the deal is being financed by a placing of FI shares to raise a further pounds 20m and new pounds 40m borrowing facility with the bank.

OSI operating profits rose 150 per cent to pounds 6.5m before exceptional items in the year to the end of June 1998, and it is expected to achieve a further growth in the current year, in spite of the ending of a large contract, FI's deputy chairman and chief executive Hilary Cropper said yesterday. The two businesses are an exceptionally good fit and should be earnings-enhancing immediately. FI shares jumped 40p to 327.5p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in