Sign In
NewsRadar

Search Press
Looking for press releases of a particular company? Enter company name (or keyword) here.

   


2e2 announces offer for Compel Group plc
Acquisition of Compel would create £250m organisation


2e2 today announces that it has made a recommended cash offer for Compel Group plc for £53 million. Compel is a well established UK based IT solutions business, comprising two principal businesses; Enterprise Solutions (sophisticated, complex and large scale IT solutions) and Short Term IT Rental Solutions. Compel was established in 1987 and was listed on the London Stock Exchange in September 1994.

Compel's Enterprise Solutions division provides large scale, complex and sophisticated IT solutions, including consulting, design, supply, implementation and comprehensive long term support. The Company’s Short Term IT Rental Solutions division (branded Hamilton Rentals) is, by a substantial measure, the largest IT rental business in the UK, providing the widest and most comprehensive range of products in the industry.

Eric Priestley, Non-executive Chairman of the 2e2 Group said, “We are delighted to announce this transaction which brings together two strong and established names in the IT services industry and creates a platform for further growth for the enlarged group. We believe this creates an exceptional opportunity to engage more broadly with our customers and create a compelling force in the UK market. We look forward to welcoming the employees and customers of Compel into the 2e2 Group.”

Compel has ten operating centres throughout the UK and has over 400 employees. In the 6 months ending 31 December 2006, Compel generated revenues of £45.0m and *adjusted profits before tax of £1.71m. In September 2006 Compel announced results for the year ending 30 June 2006 showing an increase in turnover of 17% to £92.6m and a 68% increase in profits before tax to £2.3m.

Neville Davis, Chief Executive of Compel added, “I am very pleased that we have been able to reach agreement on the terms of this transaction, which I believe provides certainty and value to our shareholders and good opportunities for our management and employees as part of a larger organisation. The 2e2 Group is a successful and broadly based IT services group, and Compel’s complementary customer base and strong service offerings should ensure that Compel can make a significant contribution to the future of the combined businesses.”

Since its formation, the 2e2 Directors have established a group capable of delivering a broad range of managed services solutions in the UK. In order to achieve this objective, the 2e2 Directors have identified and completed a number of acquisitions of complementary businesses and have then sought to maximise their organic growth potential in the context of a broader group structure.


(*excluding share based payments, non recurring items and amortisation of intangible contract assets)

The Board of 2e2 believes that the acquisition of Compel will create a union of two strong and established names in the IT services industry:
Compel will complement 2e2’s existing offering, adding further value to the customer bases of both businesses and increasing the range and depth of the services offered.

It is also expected that the Enlarged Group will benefit from increased penetration and retention of its customer base and the limited overlap between customers will further enhance this advantage.

In addition, the 2e2 Directors believe that the greater scale of the Enlarged Group will enable it to compete more effectively in its target markets and to attract and motivate high calibre staff.

The 2e2 Directors further believe that the enhanced offering of the Enlarged Group will thereby enable it to take greater advantage of commercial opportunities.

Funding of the deal
The Offer is being financed by way of additional bank debt and further subscription of Loan Notes by Duke Street Capital and Uberior Co-Investments Limited.


Publisher Contact Information:

2e2 UK Limited
01635 568000
nick.grossman@2e2.com

Company profile of 2e2 UK Limited
Past press releases of 2e2 UK Limited.

Data


25,720
Tech investments
From our Online Data Service
16,652
VC-backed companies
From our Radar


Recent Deals


DATEAMOUNTSECTOR
May 17€4.0MBiopharmaceuticals
May 16€15.0MPayment software
May 16€4.0MInternet services
May 16€80.0MConsumer electronics
May 16€6.3MImaging
May 16€13.0MInternet services
May 16€34.5MBiotechnology

For information on Europe's most extensive database on technology funding click here!

Events



Press Releases


Apr 29
Nethone
nethone raised over $1 million from innovation nest

Oct 1
The Link App
the link app launches version 2.0

Mar 29
Addex Therapeutics
addex sucessfully raises chf40 million in capital increase

Jan 2
Urban Jungle
urban jungle raises £1m in seed funding to build tech-enabled home ...

Aug 17
Komed Health
komed health closes seed financing round





About usContact usLegal Information
Copyright © 1999-2019
Emerging Technology Research Europe Inc. All rights reserved.