Maindec has acquired rival VAR CSA Waverley to create a £40m channel powerhouse.
The deal, agreed for an undisclosed sum, has been funded from Maindec's cash reserves. As of 31 March 2012 – the end of its most recently closed fiscal year – Maindec had a reported £4.9m cash in the bank, with total shareholders' funds standing at £1.6m, after adjustments for other assets and liabilities.
The Buckinghamshire-based firm saw FY12 sales grow 5.3 per cent year on year to almost £13.2m, although operating profit declined from £723,220 to £559,812.
During its fiscal 2012, CSA Waverley posted revenue of almost £26.1m. This represents a 15.2 per cent rise on an 11-month FY11 reporting period. However, operating profit for the 12 months to 31 July 2012 stood at £874,632, having reached £938,693 in the foreshortened FY11.
The loss in profitability was chalked up to increased staff and advertising costs related to the company's rapid growth spurt in the past couple of years. The Middlesex-based firm has almost tripled in size since September 2010, when annual sales were little more than £9m.
Both organisations have existed for more than a quarter of a century and have worked together on a number of projects over the years. The two will continue to trade as separate brands, with CSA Waverley managing director Andrew Boyle remaining in place, reporting to Maindec boss Roger Timms, who takes on the role of chairman.
Boyle described the deal as "the right move for the company, the staff and for me personally".
"This is a natural fit, which gives both companies access to a broader range of services and our increased scale equips us to compete more strongly for new business going forward," he added.
Timms said: "I have known and worked with Andrew for many years and we share a similar philosophy. Both companies put a premium on outstanding service for the customer. This acquisition is a sign of great confidence in our joint proposition and will bring exciting new opportunities for our clients, partners and the staff who work here."
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