Europe-bound Delphi in sale talks

Delphi Group has achieved 25 per cent growth to record revenue of #344.8 million for the year ended 31 December 1998 according to preliminary results released last week.

The figures come at the same time as Delphi's shareholders are voting on a #165 million buyout of the company by worldwide staffing organisation Adecco. If the acquisition wins shareholders' approval, Delphi will form part of Adecco's independent IT worldwide staffing services company.

Delphi, which announced last September that it was exiting the IT systems market to focus on its core staffing and training businesses, is involved in negotiations to sell one of its divisions.

According to Tony Reeves, chief executive of Delphi, the company is in talks with 'more than one potential buyer' for its US business, Alpine Computer Systems, which will be its last divestiture.

Earlier this month, Delphi offloaded its 30.5 per cent stake in French IT systems company Decan Groupe to US organisation Metamor for #25.3 million.

Reeves said the proposed Adecco acquisition will enable the 10 businesses within Delphi's group - including Computer People, The Span Consultancy and Interskill - to retain existing brands and strategy directions, with the Adecco connection offering additional scope for growth.

'The next thing we want to do is expand further into Europe,' Reeves told PC Dealer. 'We're going to have a lot of opportunities through Adecco, which has a presence in many countries on the Continent.'

If the buyout is successful, Reeves will head Adecco's IT staffing organisation in Europe.