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Harvey Nash strengthens European presence with 1m Belgian acquisition
Technology recruitment and outsourcing firm Harvey Nash has acquired Belgian IT solutions company eMenka for up to 2m.
AIM-traded Harvey Nash said on Tuesday the acquisition by its Belgian subsidiary Harvey Nash NV of eMenka, a firm focused on placing Microsoft specialists in full-time employee and independent contractor roles, will allow it to take advantage of a "thriving" software development market.
The deal is comprised of an initial consideration of 1m and a potential deferred cash consideration of 1m to be paid, subject to EBIT performance, on the third anniversary of the deals completion.
For the year ended 31 December 2017, eMenka reported gross profit of 0.82m on turnover of 3.89m and generated profit before tax of 0.21m.
Albert Ellis, chief executive of Harvey Nash, said: "This business will enhance our position as one of the market leaders and fast growing IT solutions businesses in Belgium, creating a larger pool of Microsoft specialists and employees to fulfil growing client demand. We expect the combined businesses to be recognised as one of the leading players in this niche market which will attract further talent and opportunity."
The company said the acquisition is part of its strategy to grow its businesses in Northern Europe and will see eMenka collaborate with Harvey Nash's existing offering in Antwerp.
"As we stated in the preliminary results announcement on 27 April 2018, we are encouraged by the strong trading momentum at the beginning of the current financial year. This acquisition significantly strengthens our position in Northern Europe and will further bolster our confidence of delivering success in the year," said Ellis.
As of 1033 BST, Harvey Nash's shares were up 0.25% at 103.5p.