26th Apr 2019 11:03
LONDON (Alliance News) - IT services firm Adept Technology Group PLC said Friday it has acquired Advanced Computer Systems Group Ltd for up to GBP7.5 million, and also extended its bank facility by GBP5 million.
Adept will buy education IT-focused ACS for an initial GBP5.2 million in cash. A further GBP2.3 million would be payable depending on performance over the following 12 months.
In 2018, ACS generated GBP850,000 in pretax profit on revenue of GBP5.5 million. For the year ended March 2018, Adept reported pretax profit of GBP4.5 million on revenue of GBP46.4 million.
"We are delighted to have acquired such a high-quality business with the highly experienced vendors remaining with ACS Group post-acquisition," Adept Chief Executive Phil Race said.
"AdEPT has an existing education focused IT service operation in Orpington - the acquisition of ACS Group builds on this capability and extends the geographical reach of AdEPT's IT services to Yorkshire," Race added.
"ACS Group has a well-developed customer base with long term relationships, which builds upon AdEPT's existing strong education presence. The acquisition is expected to be earnings enhancing from completion."
In addition, Adept said it has extended its revolving credit facility to GBP40 million from GBP35 million before.
"This enlarged bank facility provides the company with additional funding to undertake the acquisition of ACS Group as AdEPT continues with its strategy of acquiring and integrating earnings enhancing businesses", Adept Chair Ian Fishwick said.
Shares in Adept were 2.8% higher at 328.80 pence on Friday.
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