Avisen branches out to South Africa

Based in South Africa, Quadrum is an IBM Cognos Business Partner

AIM-listed performance management provider Avisen has acquired the business and assets of IBM Cognos reseller Quadrum Consulting (Proprietary) Limited, for £200,000.

Based in South Africa, the IBM Cognos Business Partner specialises in the IBM Cognos TM1 offering.

The Quadrum acquisition is Avisen's third this year. The reseller purchased UK-based Wexner Global in February and US-based EON Enterprises in April.

Following the acquisition of Quadrum, Avisen will have access to both the firm’s blue-chip client base and its pool of skilled resources. Avisen plans to use these to expand its offshore services capability.

The total £200,000 consideration for the acquisition will be fulfilled by the issue of 1,379,310 new ordinary shares at a price of 14.50p.

Co-founders and senior executives of Quadrum, Douard le Roux and Steven Joffe, will join Avisen’s South African subsidiary management team, with plans to expand their teams to service both the local and European markets.

Quadrum posted a profit before tax of £98,280 for the year ended 28 February, on turnover of £312,117. The value of its net assets as at 28 February was £170,520.

Analyst GE&CR, said: “Avisen’s acquisition of Quadrum Consulting is further testimony to the company’s aggressive buy-and-build strategy. The consideration paid for the acquisition is just over two times the value of Quadrum’s profit before tax for the year ended 28 February 2009 – a bargain price.

“Avisen continues to be a company to watch.”