Oxford-based computer services company Lynx Group Plc has made its second acquisition this month with a #10.2 million buyout of Tenhill Computer Systems.
The purchase of the company, which provides software, consultancy and services for consumer lending and credit management markets in the UK and Europe, was funded by #7.72 million in cash and #2.49 million in Lynx shares issued at 195.8p each - to be retained by the vendors for a minimum of 12 months.
This is the third acquisition this year for the hungry Lynx Group, which has bought 12 companies in the past five years. Networking distributor Globelle was a #3 million New Year's Eve buy, to fit in with its Sphinx CST networking division. Earlier this month, Clifton Reed Training, which specialises in IT training for the corporate market, was added to the shopping list for #2.1 million.
Commenting on Lynx's strategy, chief executive Richard Last said the company focuses on a number of application markets, including automotive, financial and commercial systems. Tenhill's application software business focuses on leasing, credit and finance.
Last added: 'The two sides add strength to the group, as we can grow without being dependent on any one sector. There is some cross-fertilisation - the service side can work for the application side. However, we keep an arm's length approach as each is run as a separate business division.'
Paul Sinnett, group financial director, vowed there would be no job losses.
'The thing about Lynx is growth. We look for profitable growing businesses.
We're not an asset-stripping type of company.'
Sinnett indicated Lynx would make more acquisitions: 'We are always on the lookout.'
June 1993 - Signal
Dec 1993 - Chess Valley Computers FSL
March 1994 - CST
March 1995 - Heywood & Partners
Nov 1995 - Vistec
April 1996 - Tesoft
Oct 1996 - Quadra
May 1997 - Apex
Jan 1998 - Globelle
April 1998 - Clifton Reed Training.
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