Icom buyout marks Keane entry into Europe

Birmingham reseller Icom has been acquired by US giant Keane in a deal that gives the services specialist its first European foothold.

Keane will purchase Icom for about #30.6 million in a stock deal that continues the US company's aggressive acquisition spree.

Three US resellers have already been subject to takeovers this year, but the Icom deal was Keane's first move overseas and part of its plans to establish itself as a global player.

John Keane Jr, president of Keane, said: 'Icom is a strategically important investment for Keane in that it supports our goal of becoming a global organisation. It is an excellent fit for our company and has developed strong relationships with a base of distinguished clients.'

Icom focuses on the financial services market with clients including The Halifax, Guardian Insurance and British Airways.

Irene Brown, managing director and Ray Davies, director of Icom, led a management buyout team in 1996, acquiring the reseller for #5 million.

The buyout will result in 200 of the 330 staff sharing a #16 million jackpot.

Brown stated: 'With the support of and access to Keane's expertise and experience, Icom is now well placed to expand service products, sector coverage and geographical presence.'

An analyst at Gartner Group said: 'Keane has many strengths as it strives to meet its goal of $1 billion in revenue by 1999. But it's not without its challenges, particularly in staffing and brand recognition.'