IT and telecoms services consultancy Glen Group has bought inGroup for £1.36m.
Glen has issued 200m shares at a notional value of 0.55p a share and paid £250,000 in cash for inGroup. That notional share price is well above Glen’s real trading price. The business provides consultancy services and software to businesses for their financial reporting, budgeting and planning. This fits well with Glen’s subsidiary Eclectic, which had worked with inGroup in the past.
The acquisition means that Glen’s annualised turnover is running at just above £10m. Glen has struggled to attract attention because it is so small but more deals like this and will start to attract more attention. Edison believes inGroup will add £185,000 to next year’s operating profits. It predicts Glen will lose money in the year to September 2007 but, helped by inGroup, it is forecast to produce profits of £420,000 next year.
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