Stone Group picks up pieces of stricken Rock

Ambitious public sector IT specialist Stone Group has targeted more acquisitions in the coming months after buying stricken rival Rock in a deal that may offer little good news for the system builder’s creditors.

The acquisition was completed for an undisclosed sum and Stone will now sell Rock’s range of business and gaming notebooks into its existing public sector customer base.

Of the 25 staff employed at Rock when it went into administration, 14 will remain in employment with Stone, including managing director Nick Boardman, who joins the boardroom set-up as director of Stone’s mobile technology division.

Stone chief executive James Bird told CRN: “Rock has developed over the years as a good-quality competitor. We have looked at the brand and there are synergies with what we do.”

Rock’s gaming notebooks mark a departure for education specialist Stone, but Bird maintained the products would be fully supported.

“The gaming market is a new market for us and it is part of what we bought into,” he said. “The gaming products will continue to grow.”

He said the acquisition would increase Stone’s revenues by about £6m, which would be in addition to his target of £70m revenue this year. Talks concerning further acquisitions are in progress and Bird hopes to close another deal by the end of July.

“This is a signal to the industry that we are going to be acquisitive over the coming months,” he said.

Boardman noted that it is vital customers’ historic warranties be supported. “Everyone can buy Rock products with confidence,” he said.

However, one industry source was not so positive: “Stone is an extremely well run company and good luck to them. But the assets of Rock are negligible and the quality of management was poor. The return to the creditors will be nil; only bits and pieces they buy from the administrator.”