(AN-.L) Alternative Networks PLC Buy/Sell

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Nov 2 (Reuters) - Business communications service provider Alternative Networks said it bought software firm Aurora Kendrick James Group for a maximum of 5.5 million pounds ($9.04 million) to boost its customer service portal.
Alternative Networks said it would initially pay 3.75 million pounds in cash and 800,000 pounds in shares, with up to 750,000 pounds cash and 200,000 pounds in shares payable in 12 months.
Alternative Networks, which offers a range of fixed-line, mobile, voice and data products, said the acquisition would help in the management of a new three-year contract for a major network operator.
The company said it expected the contract to generate about 1 million pounds in fees in the first year.
The acquisition of Aurora, which provides billing services to more than 50 telecoms and IT service providers in the UK, is expected to add moderately to Alternative Networks' earnings in the current financial year.
In the year ended July 31, Aurora's posted a pretax profit of 300,000 pounds and its sales rose 4 percent to 3.6 million pounds.

($1=.6087 Pound)

(Reporting by Purwa Naveen Raman in Bangalore; Editing by Vinu Pilakkott) Keywords: ALTERNATIVENETWORKS/ (purwa.naveen@thomsonreuters.com; +91 80 4135 5800; Reuters Messaging: purwa.naveen.thomsonreuters.com@reuters.net)

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