NCR joins 4Front of services business

IT services group 4Front has agreed to be bought by systems vendor NCR in a deal valued at $250m (£167m). Some of its operations may be sold off.

IT services group 4Front has agreed to be bought by systems vendor NCR in a deal valued at $250m (£167m). Some of its operations may be sold off.

Terry Burt, chief operating officer at 4Front, said that although the group had been planning for an independent future and making acquisitions of its own, it had to acknowledge there are bigger fish in the sea.

"I've received quite an education. As a director of a US-based company, you are under a strong obligation to see what's best for shareholders," he said.

Although it has its headquarters in the UK and operates mainly in Europe, 4Front listed on Nasdaq in 1996.

Burt said that 4Front was acquired for its people and its strength in support services and network implementations. "I've no doubt our operations will be put under the microscope [by NCR] and their suitability considered," Burt said. He added that NCR had been positive about 4Front's businesses, but he would not be surprised if 4Front Software and its ecommerce arm were considered to be outside NCR's core business.

Richard Holway, software and services analyst, said: "NCR has paid a good premium, and directors have an obligation to consider good offers. Everything has its price."

Burt said that 4Front had found it difficult to raise its brand profile among large customers, and that being part of NCR will overcome that problem.

NCR has not discussed redundancies, although some consolidation at 4Front seems inevitable, said Burt.