21 January 2014 | Will Green
E-procurement firm Proactis has entered an agreement to buy competitor EGS Group in a £2.9 million cash deal.
The deal will create a group working with mid-sized firms across many industry sectors and around 200 public sector organisations, covering more than £15 billion of public spend across approximately 150,000 suppliers.
The joint customer list covers central government bodies, local authorities and charities, including the Department for International Development, Essex County Council, University of Birmingham and West Yorkshire Police, along with private firms such as Bauer, Clarins and Virgin Active.
Proactis reported revenue of £8 million in the financial year to 31 July 2013 with operating profits of £600,000. EGS, for the year ended 31 December 2012, reported operating profits of £404,000 on a turnover of £2.8 million.
Rod Jones, CEO at Proactis, said: "EGS' substantial expertise as a competitive e-procurement solution provider, allied with the complementary nature of Proactis' expertise and complete end-to-end suite of integrated solutions, means that customers can look forward to the delivery of even more robust and broad solutions that they can leverage to support their operations, enhance procurement effectiveness and extend collaboration with their suppliers."