2e2 outlines Morse integration timetable

Full integration will not begin until 1 January as 2e2 takes time to evaluate Morse assets

Terry Burt: We do not want competition to accuse us of taking our eye off the ball

2e2 will wait for six months before moving to fully integrate Morse, chief executive Terry Burt has revealed.

Private equity-owned 2e2 announced this morning that it has closed its £69.8m acquisition of its London-listed rival, creating an integrator-VAR giant with revenues of more than £400m.

Speaking to CRN, Burt said the Morse brand, broad strategy and its current operational management will remain in place until January 2011.

2e2 and Morse's combined strategy until then will be driven by an interim “management triumvirate”. This will comprise 2e2 chief operating officer Mark McVeigh, 2e2 UK managing director Neil Allpress and Morse UK managing director Nick Petheram.

“The first six months could be characterised as a pragmatic integration and you will see the Morse brand persisting for a period of time,” explained Burt.

“But on 1 January you will see a more holistic integration as we put the two companies together under a unitary management. From 1 January, I also expect to predominantly have a 2e2 brand.”

Some “straightforward" items will be dealt with immediately, Burt said. For instance, members of Morse’s corporate board, such as Kevin Loosemore and Mike Phillips, will leave within a month. Duplicate properties will be harmonised in the first six months.

“We will also do some loose integration,” Burt added. “There will be a limited swapping of divisions in the early days to ensure like technologies are together.”

But Burt emphasised that a period of education is needed to ensure the combined company takes full advantage of its assets.

“Morse was on an upward trajectory,” he said. “We want to complete its turnaround plan and ensure Morse staff and its client base feels part of the process. We do not want to interrupt that flow but we do want to educate ourselves on what Morse is capable of, so that when we do the reorganisation on 1 January we do it with full knowledge of what we have.”

Burt added that McVeigh, Allpress and Petheram have been tasked with ensuring the enlarged firm does not lose focus.

"They will be working to ensure we are not too internally focused," he said. "We do not want competition to accuse us of taking our eye off the ball."