Morse signs off on Diagonal deal
Corporate VAR completes £50m acquisition of security firm
Morse has completed its £50m acquisition of Diagonal after more than 18 months of circling the SAP consultancy and security supplier.
However, the corporate VAR has warned that redundancies are likely as it looks to make cost savings following the purchase.
David Beresford, UK managing director of Morse, said the company wants all shareholders to back the agreement. "In real terms we know we have acceptance from 85 per cent of shareholders. The difference between that and 100 per cent is just those that have not yet received their papers," he said.
"With the coming together of two plcs, [restructuring] is likely. We are looking to make at least £1.5m in savings."
Morse has set itself a 100-day plan to work out its integration strategy.
Diagonal's SAP business, Diagonal Consulting, was a major factor in the decision to buy, Beresford added. "Morse has not dealt with SAP for a number of years. We will invest in marketing and understanding the overall operation," he said.
Earlier this month corporate VAR Microgen ended its efforts to acquire Diagonal, clearing the way for Morse's deal.
Beresford did not rule out further acquisitions. "We are not planning any in the UK but if we can acquire a company the size of Diagonal successfully, there is nothing to stop future acquisitions," he said.
Gordon Davies, commercial director at reseller Compusys, said: "There is no question that Morse has an agenda to build itself into a top-tier integration shop. It is a smart outfit."