Morse snaps up consultancy firm
Goes after financial services X factor with Xayce
Morse has swallowed up Manchester-based consultancy firm Xayce plc for £3.6m in a majority cash deal.
The professional services firm said it had paid £2.35m in cash and £1.25m in shares to secure the acquisition.
An extra £2.5m consideration payable in shares has also been earmarked by Morse, depending on future company performance.
Morse, which earlier this month saw group profit fall 13 per cent, said it hoped the buyout would help strengthen its position within the financial services and public sectors.
In a statement it said Xayce - which was founded by several ex-Accenture consultants in 1998 and provides back office transformation services to insurance firms, retail banking and local government - reported revenues of £4m in March this year.
Morse CEO Kevin Alcock said: "At our full-year results, we stated that we would make acquisitions where they offer the opportunity to add specialist capabilities or accelerate the group's overall development effort, and it is pleasing to be able to deliver on that objective."
Shares in Morse are currently trading at 95 pence on the London Stock Exchange – down 1.04 per cent on the previous close. ®