Ferrari Holdings Plc is to acquire Blue Chip Systems Group Plc for UKP1. Blue Chip is an information management systems house which grew fat on the back of the 1980s construction boom by supplying super-minis to property companies. However, since 1987 it has acquired interests in software packages for a variety of vertical markets including […]
Ferrari Holdings Plc is to acquire Blue Chip Systems Group Plc for UKP1. Blue Chip is an information management systems house which grew fat on the back of the 1980s construction boom by supplying super-minis to property companies. However, since 1987 it has acquired interests in software packages for a variety of vertical markets including estate agency management, independent schools, service management, and defence industry logistic support. During the financial year to March 31 1989 Blue Chip made a net profit of UKP284,000 on a turnover hovering below the UKP5m mark. Nevertheless as it is still heavily dependent on the property market with about 80% of its turnover coming from this sector, it has recently hit serious financial difficulties and is now running at a loss. Under the acquisition Blue Chip will become a wholly-owned subsidiary of Ferrari. Its maintenance business will become incorporated with that of Ferrari’s, but the other parts of the business will probably remain as a separate division within the group. Blue Chip will, however, be encouraged to diversify and direct its skills away from the housing market which is showing no signs of recovery. The acquisition is for a nominal sum because the vendors are the directors: they are staying with the company and are being retained by Ferrari under three-year service contracts that will be linked to profits.
