Proactis sets out plans to make acquisition

PROACTIS, the Yorkshire spend control software provider, has entered into an agreement to acquire EGS Group, which it says would create the largest independent eProcurement solution provider to the UK public sector.

The £2.9m deal would see solutions provider EGS bring over 70 new clients to the business, managing more than £2.5bn of spend through 40,000 suppliers.

Rod Jones, chief executive officer of Wetherby-based Proactis, said: “I am delighted to announce our proposed acquisition of EGS.  EGS is an excellent strategic fit for Proactis creating what I believe will be the largest independent eProcurement solution provider in the public sector specifically and the UK market generally. Its substantial scale, level of profitability and available synergies will immediately benefit the wider PROACTIS business. 
 
“I look forward to being able to report further progress as we work together through the integration of the businesses over the coming months.”

Proactis sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll.

Proactis said the acquisition will further strengthen its footprint in the sector and strengthen the group’s position as the largest independent eProcurement solution provider to the UK public sector covering approximately 200 public sector organisations controlling over £15bn of public spending across approximately 150,000 suppliers.
 
Completion of the acquisition is expected to take place at the end of this month and Proactis said the group will fund the deal from a combination of bank debt and its own cash resources. 

Bank debt will be provided by HSBC with a term loan of £1.5m.