Boss of WorkPlace Systems bags £19 million from buyout

The founder of staff management software group WorkPlace Systems was celebrating today after netting some £19 million when his company was acquired via a management buyout.

Ian Lenagan, 65, founded WorkPlace Systems in 1986. Today the company, in which he owns a 45% stake, was acquired for £41 million.

The 25p-per-share acquisition by Wasp management Software was backed by Lloyds Banking Group, which now owns 82% of the new company. WorkPlace's management team own the rest.

WorkPlace's software uses staff swipe cards and timetables to organise shift patterns and employee numbers in sectors ranging from shops and restaurants to the emergency services.

Clients include Argos, Next, BAE Systems and fire brigades across the country.

The deal was agreed at a premium of 82% to Milton Keynes-based WorkPlace's closing share price of 13.75p yesterday.

Lenagan said: "I am delighted that this management buyout represents an attractive offer for shareholders and protects employees and customers whilst allowing WorkPlace to move to its next stage of development."

He will continue to act as a consultant to the company.

Also today, WorkPlace said it had swung to an operating profit of £286,000 in the half year to October.

This was up from a loss of £480,000 the year before.