The Compel Group is to acquire PeopleSoft consultancy firm Allinity, in a deal rumoured to be worth several million pounds.
CRN understands Compel has already paid £1m as a down payment, but that a further cash consideration of up to 70 per cent of Allninity's pre-tax profits for the year ending 30 June 2006 may also be payable.
Neville Davis, chief executive of Compel, said: "This is an excellent acquisition for Compel from both a tactical and a strategic perspective. Allinity is a clear market leader in the PeopleSoft arena.
It has a strong track record of delivering very high quality consultancy and solutions to Blue Chip customers and, in its own right, its prospects are good. When combined with our already market leading Oracle business the potential for success is enormous," he said.
Allinity will be integrated into Compel from 1 July and it is the acquiring vendor's hope that the combined businesses will be able to enlarge its footprint in the expanding Oracle market for consultancy, solutions and support.
Anton de Weger, managing director of Allinity, and directors Michael Cooper, Simon Lassam and Matthew Lawrence have all signed service contracts to remain with Allinity.
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