Support services provider Serco Group have announced an unconditionalagreement on the terms its offer for consultancy business Cornwell Management Consultants. The offer will be 40 pence in cash for each Cornwell share, valuing the company at approximately £7m. 

The acquisition of Cornwell is an important step in Serco’s development of its consulting business, which has grown rapidly since it was founded in 2003. Cornwell will broaden Serco’s service offering, adding new skills and capabilities in information and knowledge management, particularly electronic document record management systems. It will also increase Serco’s capacity in project and programme management and enterprise architecture. 

The acquisition will also widen Serco’s customer base in key government spending departments and agencies, such as the Department of Health and the Identity and Passport Services Agency. These benefits, and the greater scale of the enlarged group, will make Serco’s consulting business well-placed for future organic growth. 

Keith Cornwell, Executive Chairmanof Cornwell commented: “We are pleased to be joining a group as strong as Serco. Cornwell has made an encouraging start to 2007 with substantial orders and a promising prospects pipeline. We believe that combining our reputation for high quality management and IT consultancy, with Serco’s capabilities, financial resources and intention to invest in the combined consultancy businesses, will enhance Serco’s ability to develop a substantial consultancy business in the medium term.” 

Christopher Hyman, Chief Executive of Serco said: “Our consulting business has grown rapidly over the last four years and our ambition is for it to be a leading enabler of business transformation. The acquisition of Cornwell is an important step, increasing our capabilities and capacity to provide high value advice to our customers. We look forward to welcoming our new colleagues to Serco and taking on the exciting opportunities in this market.”