Morse set to buy Diagonal
Microgen 'will not offer a rival bid' for reseller
Corporate VAR Microgen will not continue its efforts to acquire SAP reseller Diagonal, clearing the way for Morse to finalise its £50m deal.
Microgen said it would not offer a rival bid for Diagonal. In June, the Diagonal board rejected a bid from Microgen and instead supported Morse's offer.
Mike Phillips, group financial director at Microgen, said the company has been in discussions with Diagonal for two years about a possible acquisition but has decided not to pursue it further and to accept Morse's offer for the share it holds.
"Our original intention in setting up Microgen was to grow an IT services company in the UK. We will continue with the strategy," he said.
Kate Hanaghan, research analyst at Ovum Holway, said: "Microgen would have been a good home for Diagonal. But Morse has a scale it can't match."