The acquisition, by AIM-listed Calyx Group plc (Calyx) represents Calyx's first move into the UK ICT market, where it will leverage ITS' expertise in voice and data, networking and systems integration as well as its channel relationships with vendors such as Siemens, Cisco, Nortel and Microsoft. Calyx will be deploying its new remote managed service to UK users from its state-of-the-art Network Operating Centre, via ITS.
ITS is already an established provider of voice and data and other enterprise solutions for the healthcare, publishing, emergency services and government markets. Its clients include St. Ives Group plc - the international printing company; Associated Newspapers Ltd - a subsidiary of the Daily Mail and General Trust plc; and Gwent Healthcare NHS Trust - one of the largest and busiest NHS Trusts in the UK.
ITS was formed in 2002 through an MBO of the UK technology services division of Intergraph, the NASDAQ-listed global provider of spatial information management (SIM) software. The MBO was led by managing director Kieran Archer and sales director Andy McCathie, both of whom will remain with the enlarged Company.
The Calyx board of directors believe that ITS has good synergies with Calyx's already strong Irish business as well as a strong and established management team, which will help the Calyx Group develop in the UK. Currently there are no plans for redundancies resulting from the acquisition. Further investment and growth is expected as the Calyx brand is rolled out in the UK.
Calyx is expecting to invest further over the next 12 months to provide ITS with the capability to deliver Calyx's advanced solutions based around compliance and remote managed services - enabling ITS to broaden its customer reach and increase its market share. Thereafter, the acquisition is expected to enhance Calyx's earnings per share.
Commenting on the acquisition Maurice Healy, chief executive of Calyx said: "I am delighted to announce this ITS acquisition - our first to bring Calyx into the UK market. It has always been our stated intention, from the time of our IPO, to launch and develop in the UK market and the acquisition of ITS provides the ideal springboard from which to do this. ITS has an experienced and well regarded management team who will expand and develop the Calyx offering across the UK market. ITS also has a strong customer base which we plan to develop and grow through the introduction of Calyx's advanced remote managed services. The ITS acquisition is another step in the execution of Calyx's strategy to provide advanced infrastructure to its customers. Following the acquisition of Convergent in July and of QCL last week Calyx now occupies a strong market position within Ireland and we now believe we are in a good position to focus on the buoyant UK ICT market."
ITS managing director Kieran Archer added: "Calyx and ITS is a natural fit, and with new resources we will be ideally placed to market our combined offer".
This is the second acquisition announcement by Calyx in recent days. Last week they announced the acquisition of QCL, the Cork based IT product and services company.