Member Article

Wetherby’s PROACTIS acquires competitor in £2.9 million buy-out

Wetherby-based PROACTIS, a spend control software provider, has announced it will be acquiring EGS Group Ltd for £2.9 million.

PROACTIS helps organisations improve their operational and financial performance by improving the way they buy goods and services.

The net cash consideration is expected to be approximately £2.2 million as EGS is expected to have approximately £0.7 million of cash at completion.

EGS is projected to bring over 70 new clients to the Group, managing more than £2.5 billion of spend through 40,000 suppliers

Acquired annual recurring revenue is anticipated to be more than £1.6 million.

A statement released today said: “The Directors believe that the Acquisition will further strengthen PROACTIS’ footprint in the sector and strengthens the Group’s position as the largest independent eProcurement solution provider to the UK Public Sector covering approximately 200 Public Sector organisations controlling over £15 billion of public spending across approximately 150,000 suppliers.”

Rod Jones, CEO commented: “I am delighted to announce our proposed acquisition of EGS. EGS is an excellent strategic fit for PROACTIS creating what I believe will be the largest independent eProcurement solution provider in the Public Sector specifically and the UK market generally.

Its substantial scale, level of profitability and available synergies will immediately benefit the wider PROACTIS business.

“I look forward to being able to report further progress as we work together through the integration of the businesses over the coming months.”

This was posted in Bdaily's Members' News section by Clare Burnett .