Compel has bought Hamilton Rentals for about #14.5 million, three months after it withdrew from the deal due to suspicions over Hamilton's lease broking division.
The Hamilton acquisition was supposed to be completed in September, but Compel backed out when it was discovered that lease transactions arranged through the firm had involved suspected collusion between a supplier and a number of lessees. After this discovery, Hamilton shut down its lease broking arm and made the staff redundant.
A Compel representative said the #250,000 costs it had incurred for the failed acquisition would be included in the costs for the resurrected deal.
Compel is raising about #15.19 million to finance the Hamilton purchase in an 11 for 18 rights issue of up to 9.49 million shares at 160p. The deal is initially worth #13.7 million, with an additional #850,000 to be paid, depending on Hamilton hitting targets at the end of its financial year on 30 June 1997.
Martin Hellawell, general manager at Computacenter, said he thought it was a good deal for Compel. 'It sounds as if they've got Hamilton for a good price,' he said.
Neville Davis, chairman and chief executive of Compel, said Hamilton would be run as an autonomous subsidiary, with David Frankling remaining as its MD. Frankling will also join the board of Compel.
'Compel and Hamilton will stay separate, but where appropriate we will work together to offer the customer a seamless solution,' said Davis.
Compel's interest in Hamilton is equally based on its rental and reseller businesses. Davis said: 'Hamilton is the number two Hewlett Packard reseller and has a well-established Digital relationship, as well as a very strong rental business.
'Compel has experience in all those areas, but this deal materially enlarges our business and enables us to offer our customers a broader and deeper range of services.'
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