10th Mar 2014 08:32
LONDON (Alliance News) - Personal Group Holdings PLC Monday said it has acquired Lets Connect IT Solutions Ltd in a deal worth up to GBP12 million that adds to its presence in the home-technology salary-sacrifice market, giving the AIM company the "considerable" opportunity to cross-sell its products to its acquisition's blue-chip customers.
In a statement, Personal Group, which provides employee benefits, employee related insurance products and financial services in the UK, said it will pay GBP6.0 million in cash for Lets Connect, followed by a two-year performance-related earn out period for the remaining half.
The home-technology salary-sacrifice market involves employees giving up part of their salary in exchange for use of products such as computers, televisions or tablets over a number of years at home. Employees who choose to sacrifice their earnings are given tax savings and may even be exempted from part of their national insurance contributions.
Chief Executive Mike Scanlon said the acquisition is in line with Personal Group's strategy of driving organic growth with a focus on technology and also identifying acquisitions that can improve what it can offer to clients.
"Lets Connect is a fast growing business in an exciting space and the board is confident that the new product offering will resonate with our existing customer base, providing considerable opportunity for cross-selling. The home technology market is growing significantly and we are excited to be a part of this sector," Scanlon said in a statement.
Personal Group said Lets Connect has a blue chip customer base of over 100 companies, with a potential 600,000-strong employee base, and will also give it a "heightened presence" in the public sector, through through regional county councils and NHS bodies. Private sector clients include National Grid, Aviva, GE Capital, Grant Thornton and Bank of New York Mellon.
According to Personal Group, Dave Cullinane and Stephen Manister, the founders and managing directors of Lets Connect, will remain with the company and report to Director and Deputy Chairman Ken Rooney.
Lets Connect will continue to operate from its offices in Bromsgrove, and no structural or operational changes to the business are proposed in the near term.
Personal Group shares were Monday up 0.7% at 505.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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