The infrastructure reseller arm of Business Systems Group has been transferred to BT Engage IT by new parent Advanced Computer Software, freeing up £1.1m in annual operating expenses.
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The £15.5m acquisition of BSG became unconditional last month and following a review ACS has decided to focus on the managed services operation, meaning that 26 infrastructure staff have become full time BT employees.
"Hardware resellers are good businesses if they are managed by the right types of organisations, you cannot have a smaller player trying to achieve the same kind of value that BT can provide," Vin Murria, ACS CEO told MicroScope.
She added that long term BT was a "safer environment" for the staff and allowed BSG to concentrate on its "core" services business with both existing and ACS primary healthcare accounts that are interested in SaaS.
ACS is a software developer and products include iNurse, a mobile device for community nurses, Summary Care Record which creates a single view of patient data and an End of Life application to manage palliative care.
The infrastructure business at BSG Group turned over £10.69m in the six months to 30 September 2008, a 14% rise on the previous year and contributed £1.1m to overheads.
Under the agreement, BSG will be paid a percentage of the gross margin achieved by BT Engage IT for three years, expected to be at least £1.5m. The infrastructure unit will not return to BSG said Murria.
The cash will add to the £58m war chest that Murria said it had sitting in the bank to fuel an acquisition strategy.
"We are looking for other acquisitions, largely in the software space and each one that we bring on board will supplement the capability that BSG provides because they will all be hosted in the BSG environment."
Murria has a track record of rolling up businesses, including Computer Software Group, which merged with IRIS and was sold to equity group Hellman and Friedman in June 2007 for £500m.
She, along with ACS chairman Michael Jackson, former chairman and founder of Sage, have acquired 90 firms in their careers to date.