DCC, the support services group, has bought Hammer, a Basingstoke-based data storage company, for £38.3m.
A recent entrant to the FTSE 100, DCC distributes products in the oil, electronics and healthcare sectors and also operates in waste management.
The Dublin-based company said Hammer's business was complementary to its existing server and storage business, and that the deal – which is subject to competition clearance from the European Commission – should be competed by the end of December.
Hammer distributes server and storage products for a broad range of suppliers including Dell, Intel, NetApp, Seagate and Western Digital, and sells to resellers, cloud service providers and system integrators from sales offices in the UK, France, Germany, Sweden, Holland and Belgium.
DCC has agreed to acquire 100% of the issued share capital of Hammer based on an initial enterprise value of £38.3m, and will pay in cash.
An initial payment, made on the deal's completion, will be followed by further payment based on Hammer's future trading results.
In its financial year ended 31 January 2016, Hammer, which employs 165 people, made an operating profit of £6.3m on revenue of £155m.
DCC can also boast good recent results, partly off the back of previous acquisitions. The company's operating profit rose to £300.5m for the year ending March 31, from £221.7m last time round.
Last year DCC bought French gas company Butagaz from Shell for €464m, and snapped up Esso’s unmanned petrol station business in France for €106m.
Tommy Breen, DCC's chief executive, said: ""The acquisition of Hammer will significantly strengthen the product and service capability offered by Exertis to its reseller customers.
""In addition, Hammer's expertise will better enable us to take advantage of positive industry trends, including growth in cloud datacentres and demand for big data analytics.""
Jefferies reiterated their advice to invest in DCC.
Published Date: 14/10/2016
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