Feeds

Compel paid £18 million to acquire Info'Products UK

Headline price £1 - has Compel overpaid?

  • alert
  • submit to reddit

Mobile application security vulnerability report

Info'Products is paying Compel £18 million to take IP UK off its hands. The headline price is just £1 -- an indication of Info'Products' disastrous UK performance in the last few years, following the removal of IP UK founder Gerry Redman, Compel puts it only a little more diplomatically in its shareholder circular: "The directors believe that the losses the business (IP UK ) incurred have arisen primarily as a result of management failures. In addition, the Board believes that these problems were exacerbated by the acquisition and mismanged integration of Simmons Magee PLC in early 1997." Compel will repay £10 million worth of Info'Products debt, and in return it is getting £28 million worth of guaranteed net assets (presumably inventory and buildings). Compel has raised £5 million to fund the acquisition. And it will fund the ongoing restructuring costs of what is a still a heavily lossmaking company. Prior to the deal, Info'Products UK had 475 employees -- but it is currently undergoing an extensive redundancy programme. Compel CEO Neville Davis said the group was unable to stem the redundancies but assured categorically that no jobs will be lost at Compel. IP UK has nine branches -- eight in the UK and one in Dublin (which brings Compel into the Irish market for the first time). The company has substantial offices in the City and Heathrow and a huge warehouse in Chelmsford -- all of which Compel is interested in retaining. However, there is considerable overlap with Compel's geographic coverage. So plenty of scope for property divestment there. The deal will expand Compel’s turnover by up to 60 per cent –- if it manages to retain all Info’Products accounts. Info'Products UK produced revenues of £170 million for the year to 31, December 1997. Davis is confident that the company will retain the vast majority of the business. "IP has little problem with service levels -- it's leadership and strategic direction that corporate customers are concerned about. We will supply both." The Info’Products UK deal places a question mark over the rest of the Dutch parent company Burhman’s computer operations. Info’Products is –- or was -- Europe’s third biggest reseller (behind GE Capital IT Solutions and Computacenter), with substantial and profitable operations in France and the Netherlands. Substantial and profitable are the keys here -- IP UK was neither, ranking only four or five in the UK -- and with absolutely zero prospect of getting into the top three. Entex, the US reseller giant will have to find another UK partner for its One-Desk global alliance -- as Compel is a member of the rival GlobalServe consortium, which has Compucom as its US affiliate. Compel says it is happy to service OneDesk UK business "for a period of time". Acquisitions pay off for Compel Info’Products completes divestment

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.