Proactis goes shopping for eProcurement firm
PROACTIS has remained proactive in the deals market by spending £4.5m on eProcurement business Due North.
The Wetherby-based group made two acquisitions in 2014 and three last year as it continues to bolster its organic growth with bolt-on purchases .
Due North, which was part of York-based Access Intelligence, has more than 300 clients, including the Bank of England and the Met Office. Its public sector focus is expected to complement Proactis’s customer base.
Rod Jones, chief executive of Proactis, described the acquisition as “an excellent strategic fit”.
He added: “Due North’s market penetration is substantial and should immediately benefit the wider Proactis business.”
Unaudited accounts for the year to November 2015 showed Due North generated pre-tax profits of £0.2m on revenues of £1.8m.
The purchase will be funded through a combination of a £3.0m bank loan and Proactis’s own cash resources. Access Intelligence will use the proceeds to strengthen its balane sheet and provide additional working capital.
Chief executive Joanna Arnold said: “The divestment of Due North from the group is in line with our strategy to focus on SaaS [software as a service] solutions in reputation and risk management.
“Over the last 12 months, we have pruned non-strategic businesses to provide the group with greater financial flexibility and create value for our shareholders.”
Proactis was advised by Richard Naish and Edward Ainscoe from law firm Walker Morris.
