Feeds

Computacenter 'preps £250m Synstar bid'

Not one of our rumours

  • alert
  • submit to reddit

Seven Steps to Software Security

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). ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.