German IT integrator and services provider Cancom SE, through U.K. unit Cancom Ltd., agreed to buy Belfast-based peer Novosco Group Ltd. for about £70 million.
Under the deal, Cancom SE paid £60 million in cash and a 7.5% stake in Cancom Ltd. to Novosco's owner-sellers, according to S&P Global Market Intelligence data.
About 300 Novosco staff will join Cancom's workforce post deal completion, with Novosco's sellers remaining active in the company's operations. Novosco co-founder and sales director John Lennon will become joint managing director of Cancom Ltd., sharing the role with Managing Director Martin Hess. Novosco's other co-founder and Managing Director Patrick McAliskey will remain a shareholder and adviser to Cancom Ltd.
Cancom expects the acquisition to expand its managed services capabilities and beef up its market presence in the U.K., while also gaining direct access to the Irish market.
The transaction came as Cancom reportedly evaluates its options amid recent takeover approaches from private equity firms and bigger peers in the IT industry.
Novosco offers managed services, cloud-based services, IT consulting and support to a range of customers, including public, private and voluntary sector organizations.