R/Base bought by Microgen

VAR Microgen has acquired SAP and consultancy reseller R/Base in a deal worth £1.2m, along with £400,000 of R/Base's outstanding debts.

Mike Phillips, group finance director at Microgen, said R/Base has been looking for potential buyers for some time. “This acquisition will strengthen our position in the financial software and services market. R/Base is an enterprise-focused firm, and it possesses the skillset we require,” he said.

R/Base, Microgen’s eighth acquisition since 1998, recorded revenue of £3m and an operating profit of £400,000 for the year ended 30 April. The firm will be integrated into Microgen’s solutions division.

James Calvert, chief executive of analyst Regent Associates, said: “Microgen will continue to grow by organic methods, but I would also regard it as a prime candidate for some larger acquisitions,” he said.

In August, the VAR dropped efforts to acquire SAP reseller Diagonal after its bid was rejected in favour of a £50m deal from Morse.

“Microgen will look to further carve its name in the market,” said Calvert.