ACS to weave in Fabric Technologies after £4.6m buyout

Software and services firm acquires capital-based MSP and VAR

Software and services outfit Advanced Computer Software (ACS) has acquired London VAR Fabric Technologies in a £4.6m cash deal.

Fabric reportedly works with a 160-strong mid-market customer base and posted EBITDA of £500,000 on sales of £11.2m in 2010. It will be integrated into ACS' 365 Managed Services unit, which is based in Hackney, less than a mile from Fabric's Bloomsbury headquarters.

The VAR, which claims 58 per cent of its top line comes from recurring revenue streams, specialises in outsourcing and services, and also enjoys partnerships with manufacturers including Cisco, Microsoft, Dell and HP.

ACS chief executive Vin Murria said: "This earnings-enhancing acquisition forms part of the group's strategy to identify and acquire high-quality complementary businesses to strengthen its 365 Managed Services division.

"Fabric's market-leading offerings will help drive further cross-selling of managed services into the group's 7,000-strong customer base. We continue to seek suitable acquisition targets for our Health & Care and Business Solutions divisions."

In its 2011 fiscal year, Surrey-based ACS posted an operating profit of £5.3m on turnover of £95.4m.