IT services provider Calyx buys rival for €16m

Networked IT services provider Calyx has bought rival Mentec for €16m.

Mentec includes three divisions - Mentec International Ltd, in the UK; Mentec International Ltd, in Ireland and Transfare Solutions Ltd, a UK company.

Mentec is based in Dublin and Leicestershire in England. Mentec’s UK clients include Plan International, Baxter Storey and Group 4 Technology; whilst in Ireland they include the SWS group, the AA and Dublin City University.

An initial cash consideration of €9.75m and Calyx shares with a value of €2.25m was paid on completion of the acquisition. A further cash consideration of €3m will be paid, and shares to the value of €1m will be issued in June 2007. The cash consideration is being financed by increasing an existing term loan facility by €12m.

Meanwhile, Calyx says its results for 2006 will be below market expectations, primarily due to trading behind expectations in the UK.

"This combined with an increased interest and depreciation charge means that the group now anticipates that the results for the year ended December 31, 2006 will be marginally below current market expectations," Calyx said today.