5th Oct 2015 07:48
LONDON (Alliance News) - Hosted managed and cloud computing services provider Nasstar PLC on Monday said it has struck a deal to buy hosted-desktop provider VESK Group For GBP7.8 million in cash and shares.
Nasstar will acquire VESK Virtual Desktop LLP, Appiam Ltd and VESK Ltd for GBP6.4 million in cash, funding by existing bank facilities, and GBP1.4 million from the issue of 18.4 million shares at 7.77 pence per share. Shares in Nasstar were down 1.5% to 8.25 pence on Monday morning.
The acquisition will significantly expand Nasstar's presence in the legal sector, it said, adding 13 law firms to its customer base. In addition, the deal will give Nasstar a route to building a new vertical market to complement its existing focus on legal, recruitment and finance, as VESK has secured a G-Cloud accreditation from the UK Cabinet Office. This allows VESK to sell to the UK government.
Nasstar said it sees potential for revenue and cost synergies between the companies and said there is potential for data centre consolidation.
"The acquisition of VESK opens up new vertical markets for us. I am very encouraged by the opportunity generated by the G-Cloud certification," said Nasstar Chief Executive Nigel Redwood.
"VESK also has an established customer base and brand within the legal sector and therefore this acquisition also ticks a number of the strategic aims that we set ourselves in our acquisition strategy," Redwood added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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