13 September 2006 | Helen Gilbert
Outsourcing advisory firm Orbys Consulting has been acquired by Ovum.
The acquisition is the second made by Ovum, a provider of research, advisory and consulting services in the communication and technology sector, in the six months since its stock market flotation in March.
Ovum will pay Orbys - whose clients include Boots, the Metropolitan Police Service, Sainsbury's and Thorntons - £3.64 million. Of that, Ovum will pay a maximum of £3.26 million in cash with the remainder in shares, provided certain revenue targets are achieved by August 2007.
Orbys generated turnover of £3.9 million, of which £0.18 million was pre-tax profits for the year ended 31 December 2005.
Ovum chief executive Chris Dines said the acquisition provided "excellent synergies" and said the firm's immediate focus would be to expand the sales of Orbys internationally.
"The outsourcing market is set for growth and its counter-cyclical nature means it is an excellent acquisition for the group," he added.
Orbys managing director Angela Wyatt said the acquisition would "significantly strengthen" its ability to service existing and potential clients.