DCC to acquire UK computer distributor for €42m

Diversified fuels to computer group DCC plans to buy the English-based distributor of computer servers, Hammer, for £38.3m (€42.3m) in cash, in a move it hopes will allow it to tap the growing demand for cloud-based storage.

However, the company’s shares, which are listed in London, slipped by around 0.5%. The shares have nonetheless risen strongly this year, climbing 23% despite the potential challenges of Brexit.

Merrion Capital analyst Darren McKinley said the acquisition costs represented a multiple of six times Hammer’s Ebitda (earnings before interest, tax, depreciation, and amortisation, and met “DCC’s investment criteria”.