4Front signs on the training line

$335,000 acquisition of Penagen Group training division paves way for further expansion on the Continent.

Acquisitive UK distribution and network services group 4Front way for further expansion on the Continent. Technologies has added another company to its shopping basket.

The Nasdaq and Easdaq-quoted distributor has acquired the training division of privately-owned Penagen Group for $335,000. The unit was sold off by Penagen, based in the UK, to concentrate on high-end consultancy work.

The training arm was sold after a year's discussion, during which it turned over #700,000.

Samantha Kinstrey, managing director of Penagen Training, told PC Dealer the company had set a $2 million turnover target for 1999.

'There was more than one prospective buyer but that didn't stop 4Front from driving a hard bargain. A fair amount of investment will be needed, especially in recruitment,' she said.

Kinstrey added that the company hoped to use 4Front's customer base in its expansion and planned to increase its range of desktop training courses: 'With more resources available, we will be able to offer an improved service and access a wider client base.'

Anil Doshi, chief executive of 4Front, said the Penagen Training acquisition boosted the services offered across Europe and would help meet existing customers' training demands.

'We will also have enhanced in-house training capabilities for 4Front employees. It brings in a strong team and good training facilities and will allow us to expand in the UK and Europe.'

The Penagen acquisition continues 4Front's spending spree which last month secured it Memorex Telex Italy for $3.45 million (PC Dealer, 7 October).

Other buys include European subsidiaries of Eurosystems, Netix and Firstpoint.

It marks acquisitions with investment and demands of high returns and has established itself in France, Belgium, Germany and Italy over the past 18 months.