Care expansion nets Cytek

Manchester-based Care Computers has acquired Cytek Engineering as part of an aggressive expansion campaign which includes the launch of its retail operation on a national scale.

The acquisition of Cytek is expected to be finalised on 16 September and will be followed by a recruitment drive. One of Cytek's assets is its authorisation as a Toshiba repair centre, which means it is positioned as the only Toshiba repair centre and reseller in the Manchester area. Care is also a reseller for AST, Compaq, Dell and Hewlett Packard.

Haydn Sternberg, managing director of Care, expects the acquisition to fuel a projected 35 per cent increase in turnover to #6.5 million for the year. 'Cytek has a very good name in the industry but it also strengthens our engineering side. This strength and the Toshiba business it will generate were the main reasons for the acquisition,' he said.

Care is also pursuing an aggressive organic growth policy for its retail operation. Stores will be opening in London, Leeds and Birmingham by the end of the year as the first step in the national launch of its retail chain, Buy IT.

Jeremy Davies, analyst at Context, commented: 'It's getting increasingly difficult for companies of this size to compete in an industry that continues to consolidate.

'In retail, it is particularly difficult with competitors such as PC World and Dixons, which are so entrenched - compete with them and you end up like Byte.'

He added: 'The key is to be a specialist - to have a niche and be the best at it. The acquisition is a good move as it aids the specialisation in that notebook niche.'