Integralis, Harrier in merger talks
Resellers claim move would be a good fit because of lack of overlap
The UK security sector continued on its consolidation course last week as reseller Integralis embarked on merger talks with fellow VAR Harrier Group.
If the deal is completed it will see the joint firm re-branded as Harrier-Integralis and listed on the Alternative Investment Market (AIM), with further acquisitions being sought.
Mark Silver, chief executive of Integralis, said the Harrier business, which includes Harrier Zeuros, is a good fit.
He added: "It is a positive step because there is no overlap. It take us into a stock market that fits the needs of the group. AIM is more suitable for us [than the German listing] because 60 per cent of our business is in the UK."
Integralis is owned by German firm Articon.
"Harrier-Integralis will be a UK firm with Articon as a German shareholder. It will hold about 75 per cent of the shares," Silver added.
For its financial year 2003 ended 31 December, Harrier Group reported a turnover of about £9m and net profit of about £200,000, compared with a loss of over £19m in the same period the previous year.
Integralis posted turnover of 86m euros last year and a loss of 15.7m euros because of costs relating to the sale of Allasso to InTechnology.
With no exceptional costs from Integralis this year, Silver expects the merged group to be profitable from day one.
Kay Eggleston, UK country manager at security distributor Risc Technology, which was acquired by NOXS in June, said consolidation is rife in the security sector.
"The golden days are over in terms of big players making large amounts of money. Margins are being squeezed because there are more firms competing for business," she said.