UK systems integrator Morse is beefing up its financial services business with the acquisition of investment management consultancy CSTIM for an initial cash consideration of £5.85 million.
News of the deal came as Morse reported group sales for the third quarter to 31 March 2004 of £96 million (2003: £80m) including £9 million from Techsol, the German storage solution and computer supply business acquired in December 2003.
The finance sector is Morse's largest business vertical, with sales of £91.1 million in the half year to 31 December 2003.
The CSTIM consultancy business tends towards strategy formulation, operational change and operational review projects. The firm employs 60 people and is headquartered in London with offices in Edinburgh, Jersey, Luxembourg and South Africa.
The acqusition provides Morse with the requisite inhouse expertise to push for higher value projects in the financial markets.
Duncan McIntyre, chief executive of Morse, says: "This acquisition will help us broaden our offering in the finance sector...and further strengthen our relationships with customers. In addition it will provide us with the foundations on which to build enhanced service offerings across other sector verticals over time."
An additional £9.5 million may be payable over the initial purchase price - to a maximum of 6.9 million Morse shares - depending upon CSTIM achieving set performance targets over the next two years.
In the year to 31 December 2003, CSTIM reported revenues of £7 million and profit before tax of £1.1 million.