Tue, 14 Jan 2014 | MERGER
Proactis, the Yorkshire spend control software business, has agreed to purchase EGS Group, in a bid to create a leader of e-procurement solution providers for Britain’s public sector.
Commerce manager EGS Group will bring over 70 new public sector clients, already using its software to manage over £2.5 billion of cash flow through 40,000 active suppliers, to Proactis.
The deal is on schedule to complete at the end of this month, and will be funded with a mix of bank debt and Proactis’ own cash resources. Bank debt will be provided by HSBC, with a loan of £1.5 million.
Based in London, EGS made revenues of £2.8 million, with an operating profit of £404,000, for the year ending 31 December 2012.
Founded in 1996, Proactis sells and services specialist software, which enables businesses to manage and monitor their internal and external expenditure.
The deal is geared to boost Proactis’ position in the market as the biggest independent e-procurement solution provider for the public sector in the UK, already working with 200 public sector organisations, and managing over £15 billion of public spending across 150,000 suppliers.
Commenting on acquisition Proactis chief executive Rod Jones said: “EGS is an excellent strategic fit of Proactis creating what I believe will be the largest independent procurement solution provider in the public sector specifically and the UK market generally.
“Its substantial scale, level of profit ability and available synergies will immediately benefit the wider Proactis business.”
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