Brit SAP house G3 Global slurps 2e2's SAP house
Diagonal moves from Morse to 2e2... to an SME in Weybridge
SAP Gold partner G3 Global - based in Surrey - has acquired 2e2-owned Diagonal Consulting in a cash deal, it confirmed this morning.
Buyers for Diagonal, which was taken over by Morse in 2004 - itself swallowed by 2e2 in 2010 - were sought after administrator FTI Consulting was called into the UK ops last month.
Chris Gunter, CEO at G3 Global, told The Channel, following due diligence it found a "number of charges against the UK assets" of Diagonal which complicated a straight buy.
"We bought the trademark, the domains and the US business as a whole," he said.
It is currently transitioning UK customers from Diagonal to G3 and Gunter claimed "the administrator will sign over each customer agreement, one at a time".
"We already put in place emergency plan for customers left stranded [by 2e2's collapse]," he said.
He said 35 axed Diagonal UK workers had transferred to G3 - and expected more to join - taking the total workforce to 80 heads.
Gunter said it had planned a "formal incorporation into North America for some time". G3 also has an operation in South Africa.
Diagonal Consulting is headquartered in Pennsylvania, US and provides SAP implementation and support services.
Gunter said the buy broadens its portfolio to include application management and support, fully managed services and hosting and mobility.
Founded in 1998, G3 Global filed abbreviated accounts for the year to 28 February 2012, showing shareholder funds of £4.6m, up from £3.6m a year earlier.
FTI Consulting continues to talk to other interested suitors about the other international operations owned by 2e2 that were not placed into administration.
The administrator told us this morning that those talks were "still progressing". ®