Telecoms and computer company ITG has agreed to acquire Targeted Transaction Management Services (TTMS), a British billing service for pre-paid mobiles and utilities, for up to £12.5 million sterling (€20.3 million). Mr John Nagle, ITG's chief executive, said the acquisition "positions ITG to gain a strategic foothold in the emerging electronic cellular top-up market in the UK. It also further consolidates our position in this market and complements our investment in Cardsave (UK) earlier this year through the addition of over 10,000 new merchants".

The consideration involves an initial payment of £8.5 million made up of £5.5 million in cash and £3 million in new ITG shares. A second payment of £1 million is payable in cash on the completion of the commercial arrangements with the electronic top-up platform provider, another £2 million in ITG shares will be paid if certain targeted profits are achieved this year, and there will be a final payment of £1 million in ITG shares when certain merchant sign-up targets are achieved.

TTMS has two main businesses. It manages the distribution of vouchers for pre-paid cellular top-up through 6,000 retail outlets in the UK. It also handles utility bill payments for a further 4,500 merchants. The group employs 30 people. Its net assets were £340,196 at the end of December and the profits attributed to these assets were £274,290. Pre-tax profit before non-recurring charges amounted to £1.1 million.

Merrion Stockbrokers, in its latest review of the company, forecasts a rise in headline earnings per share from €2.2 to €12.83 in 2000/1, to €42.4 in 2001/2 and to €70.8 in 2002/3. Sales are projected to rise to €701.3 million from €61.9 million over the same period.