Technology recruiter bought in £15m deal

Birmingham technology and recruitment company Crimson has been acquired in a deal worth up to £15m.

It has been bought by global recruiter Harvey Nash, which will pay £6m up front. There will be deferred consideration of up to £4m over the next two years, then an earn-out of up to £5m in the three years following that.

Two of Crimson’s shareholder-directors, Robert Mallaband and Simon Chave will continue as CEO and CIO of Crimson respectively.

Mallaband said: “Harvey Nash is well established with a unique portfolio of services and strong brand, and was the obvious choice when we were seeking a strategic partner to support us as we accelerate our own growth.

“I am delighted that Crimson is now part of the Harvey Nash Group and am confident that substantial success and opportunity lies ahead now that we have the backing and support of a much larger group with a global footprint.”

Crimson generated sales of £23.5m in the year to March, with its revenues split equally between its recruitment and IT solutions businesses. Pre-tax profits were £1.7m.

It is based at Birmingham Business Park and employs more than 60 people.

“This is a transformative acquisition firmly establishing the group’s business as the leading full service technology talent provider in the UK’s IT and digital sectors,” said Albert Ellis, chief executive of Harvey Nash Group.

“The breadth and depth of technology expertise and talent resources offered by the combined businesses is unrivalled in the market and we expect to achieve cross selling synergies over the coming months.

“In particular, our world class Vietnam offshore IT project and software development service will complement Crimson’s already established and well respected onshore consulting teams.”