Compel sale completed after on-off drama


Compel sale completed after on-off drama

Dominic Hall
Specialist Computer Holdings has acquired Compel for £18.5m in cash from Compelsource to expand its network outsourcing and managed service capabilities within its SCC subsidiary.

Compelsource is the UK’s third largest integrator and has 300 major users in the UK which will be incorporated into the SCC operation.

SCH’s chairman and chief executive Peter Rigby said it was looking for group turnover of around £2bn for this financial year and the combined enterprise bought about by the sale “provides major European based companies and government organisations with a proven IT partner.”

SCH has integrated its European businesses in six countries including Allium in France and InfoProducts in Holland and Germany.

Management at SCH and Compel remained tight-lipped until today after Compel cancelled the announcement of interim results and issued a statement confirming it was negotiating the sale of its desktop business.

Industry insiders said SCH and Compel met to thrash out a deal on 27 February but were unable to reach agreement over issues including SCH’s insistence on redundancies, the price of the deal and the future of a contract with the Vehicle Inspectorate.

Compel Group’s chief executive Neville Davis said it had been necessary to dispose of Compel as the group focuses on other businesses in the future.

Chief executive Mike Norris of rival reseller giant Computacenter said: “This is great — I’ve got my two biggest reseller competitors negotiating a sale of one part of a business to the other which is bound to undermine customer confidence.”

Meanwhile, a source close to Compel denied industry rumours that Compelsource had lost its managed services contract with Orange, which the reseller announced last July and claimed was in excess of £10m a year.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy