Action beefs up reseller arm with #7.9m SHL buy

Action Computer Supplies will spend #7.9 million on buying SHL Systemhouse's reseller arm in its race to achieve its goal of #500 million annual turnover, fuelled by acquisition growth.

As exclusively revealed in PC Dealer (8 April), the deal by Action means SHL will concentrate on providing services, keeping systems integration, training and outsourcing. The sale will add almost #50 million to Action's annual turnover.

Henry Lewis, Action chairman, said the company was buying the reseller arm for SHL's blue chip customer base and technical and account management skills.

The former business of SHL will sit within its managed accounts group, which was created following its acquisition of Fraser Associates in October 1997. Action has built up its presence by selling purely through mail order.

Lewis commented: 'We have the same set of values and hope to supply Systemhouse's outsourcing business.'

About 225 SHL staff, based in Manchester and Heathrow, will join Action, although both sides claimed it was too early to comment on redundancies.

Jonus Hjerpe, SHL marketing director, said: 'The acquisition will allow it to concentrate on what it is good at - systems integration and outsourcing.

'At the moment, Systemhouse isn't big enough to be competitive in these areas in the UK corporate market. It aims to be one of the top five in the UK with these services.'

Action also revealed its interim result for the 26 weeks ended 27 February.

Turnover was up 35.2 per cent to #108 million, with a pre-tax profit of #3.1 million, compared with #2.3 million last year. The operating profit figures included #190,000 from Fraser Associates for the first time. Action's e-commerce ordering systems - Order Point and Action Online - accounted for more than 10 per cent of its turnover.

Action Spain's turnover increased by 30 per cent to #3.9 million. Its loss decreased by almost half, from #142,000 to #54,000.