Eurosystems buy gives 4Front a Euro foothold

It looks as if 4Front can boast yet another notch in its belt - its latest buy is a networking firm.

Acquisitive software, services and distribution group 4Front hasits latest buy is a networking firm. snapped up Eurosystems, a French and Belgian-based computer maintenance and networking business, for $1.16 million in cash and shares.

4Front managing director Terry Burt said that the acquisition 'will give us (4Front) a foothold into Europe and will also give us a base from which to expand'.

Eurosystems has 10 local branches located throughout France and Belgium, including a specialist subsidiary Netix, which focuses on Novell, Windows NT and Microsoft.

But channel sources expressed surprise that 4Front was to invest in another hardware maintenance company, despite the group's stated intention to grow its software and networking business. 'It's curious that such an acquisitive company should want another hardware maintenance company when there's little margin in the business,' a source said.

Eurosystems is now 4Front's second specialist hardware maintenance acquisition in six months, specialising in IBM services including RS6000, AIX and desktop support.

The group recently acquired Firstpoint, a hardware maintenance services company, for $6.1 million.

Burt conceded that Eurosystems would give 4Front 'nothing, in terms of product', and went on to say that the company would provide 'invaluable leverage into European markets'.

The acquisition will add about #4.5 million to the value of the 4Front group and will bring in another 50 extra staff.

4Front is carrying out a 'strategic review' of its various UK regional offices as a result of the Firstpoint acquisition.

Burt confirmed that there would be a rationalisation of offices in close locations, and also admitted that some jobs will be lost. Eighteen staff have already lost their jobs.