Ikon targets UK market with Rockliff purchase

Acquisition US office specialist buys systems integrator to improve consultancy share.

Ikon Office Solutions has turned its buying attentions to the UKove consultancy share. reseller market after it acquired IBM specialist Rockliff Computers for an undisclosed figure.

The acquisition came only one week after the US office specialist suspended the company's acquisition programme in North America for up to nine months.

The suspension was made after the company found that it needed to restate its second-quarter figures and took a charge of $110 million.

Ikon purchased Runcorn-based systems integrator Rockliff in a bid to improve its market share in network design and consultancy. Rockliff was established 160 years ago and had sales of $72 million last year. It was ex-pected that Rockliff's management team and staff will remain unchanged.

The channel has been expecting Ikon to make a UK acquisition since June 1997, after the US company admitted that it was looking at UK dealers. At the time, Ikon claimed it was examining 16 possible targets to add to its first UK buy, Redbox (PC Dealer, 18 June 1997).

One observer claimed Rockliff 'had been touting around for a buyer for some time and that it was only a matter of time before someone picked it up'.

Ikon has gained an aggressive acquisition reputation, having built up its business by buying up its competitors. During 1997, Ikon acquired 89 companies, including 28 technology services operations. In 1998, Ikon has bought 27 companies, worth $127 million in revenue.

On 14 August, Ikon reported a net loss of $88.6 million and revenue of $1.4 billion, including its transformation charges to 30 June. Recently installed chief executive James Forese, also announced it would restructure its business to control marketing costs, implement methods for delivering low-margin products and continue to seek vendor support to achieve more competitive pricing.

He said: 'We recognise that only improved performance over time will overcome the disappointments of past quarters and demonstrate we can deliver shareholder value.'