Maintenance and support services provider ICM Computer Group Plc has acquired the IBM support business of UK rival ITM Group Ltd for a potential sum of 6.5 million pounds ($10.4m).
ITM Support Services supports IBM mid-range IT systems at some 500 customers, and employs 48 staff. In the year ended December 31, 2001, ITM Support Services made a pre-tax loss of 200,000 pounds ($320,000) on revenue of 5.7m pounds ($9.1m). The target company’s net assets at December 31, 2001 were 1.2m pounds ($1.9m).
Leeds, UK-based ICM will pay an initial consideration of 3.5m pounds ($5.6m) in cash, and a further 3m pounds ($4.8m) based on contract renewals and new business wins from existing prospects over the next 12 months. The acquisition is being funded from ICM’s existing banking facilities and is expected to be earnings enhancing in the first full financial year following the acquisition.
ICM’s IT Support division encompasses hardware and software support, helpdesk, remote network management, hosting and outsourcing of IT departments. The company typically works to one or three-year contracts. The division grew revenue 12% to 27.8m pounds ($44.5m) in the year to June 30, 2003.
This article is based on an original published by ComputerWire.