The deal — exclusively revealed in MicroScope two weeks ago — was announced at the same time as Compel reported interim pre-tax losses of £1.8m on a turnover of £162.7m for the six months to 31 December 2000.
The agreement is still subject to approval from Compel shareholders at an EGM due to be held on 22 March. Sources close to Compel said the jobs at risk were in Compelsource’s back office functions at the company’s Welwyn Garden City headquarters and its Chelmsford distribution centre.
One source commented: “The plan to integrate Compelsource into SCH will inevitably involve staff redundancies, but no one knows at this point exactly how many. There is duplication in back office functions and, in a loss-making business like Complesource, that means reductions.”
The source hinted there could be some level of redeployment, but added that SCH’s Birmingham location would obviously be a problem for Compelsource’s mainly south east-based staff.
Compel chief executive Neville Davis said the sale of loss-making Compelsource removed a cloud of uncertainty which had been hanging over the company for some time. “What this says about the desktop market is that only the very largest will be successful — it requires scale,” he added.
Computacenter chief executive Mike Norris said he believed SCH’s acquisition of Compelsource was a good thing because it provided his group with competition and ongoing motivation.
“This is the demise of a long-term competitor and it is due to one thing: the superior service delivered by us — and SCH,” he added.