Systems supplier bound for AIM after reverse takeover>

Elizabeth Davidson reports

LEGAL practice management systems supplier Keystone Solutions is to be floated on the Alternative Investment Market.

Keystone, the clients of which have included Stephenson Harwood, Ashurst Morris Crisp, DJ Freeman and Masons, reached agreement for a reverse takeover with Calidore Group on 22 August and is due to begin trading today (16 September).

Partly set up by Damian Aspinall, son of maverick casino and zoo owner John Aspinall, Calidore acted as a source of money for Keystone.

"Uniquely, Calidore was formed as an investment vehicle with no business other than to find a company to take over," said Theodore Goddard solicitor Janene Waudby, who acted for Keystone.

Keystone will be renamed Keystone Software and listed on the Alternative Investment Market of the London Stock Exchange.

UK general manager Colin Morris said Keystone would receive £4m in capital as a result of the move, yet will not lose control of the company.

"The money will be put to work in product development, increasing numbers of service personnel and as operating capital to fund our growth," said Morris.

Keystone is based in New Zealand and opened a UK subsidiary, Keystone Systems UK, last year.

Nigel Gordon, a partner at London firm Stringer Saul, acted for Calidore.