Feeds

Computacenter 'preps £250m Synstar bid'

Not one of our rumours

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Shares in Computacenter jumped five per cent yesterday on market speculation that it was preparing a £250 million bid for Synstar, Europe's biggest IT maintenance firm. According to The Times, the paper that likes to be known as journal of record, Computacenter had also "informally explored a merger with its rival Compel, but decided against it". Computacenter already operates a substantial maintenance business of its own, in the UK. Synstar's tentacles spread into Germany and France (where Computacenter has subsidiaries) and other European territories. Is the Times story true? We'll find out soon enough, if it smokes out a statement to the Stock Exchange from Computacenter. No statement = no truth. And what about the Compel informal merger talks splash? Computacenter's CEO, Mike Norris, has publicly stated his regard for Compel and its boss, Neville Davis. However, there is limited upside to be gained from merging with a company that does more or less the same things but is less than a fifth of its size. Granted, Compel would bring midrange thump and leasing revenues stream through its Hamilton Rentals business, but the downside is that half Compel's customers could jump (if such a merger were ever to take place). Synstar looks more of a goer -- it brings new revenue streams, new customers and enhanced geographic coverage. There is also some scope for cost-savings, by pooling Computacenter's UK maintenance operations with Synstar. The Times refers to Synstar's "high-margin" business -- a unusual concept for the highly commoditised third-party maintenance sector, we think. Synstar is also big into disaster recovery -- one of the less price-sensitive areas of the IT market. (Corporates haggle like crazy when they're buying hardware and then they're led like lambs to the slaughter to disaster-recovery cum insurance policy rooms). ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.