Expanding company in market for more takeovers

Sheffield-based Digital Exchange has bought the Napier IT Group for an undisclosed sum.

Nick Cotton, Digital's managing director, said it planned to buy at least one more company as it gears up for rapid growth.

He added: "We are still looking for the right acquisitive moves."

Digital Exchange's services include IT networking, business telecoms, network cabling, and dictation technologies.

The acquisition of Napier increases the scale of Digital's IT support services and gives Napier's customers access to a wider range of products.

Napier, which is based in Barlborough Links, near Chesterfield, has four staff. Following the acquisition, Digital Exchange has 31 employees, and its turnover, excluding Napier, is around 2.6m.

Mr Cotton added: "The synergies between Napier and Digital were obvious from the start, and following discussions over many months with Napier's owner, Mike Smalley, a deal was struck that involved purchasing all of the issued share capital.

"It's very much business as usual as far as Napier's customers are concerned; they will continue to be serviced by the same technical consultant.

"However, supporting all of that will be the larger infrastructure of technical expertise within Digital Exchange, plus a broader range of technology-based products and services."

Digital Exchange aims to have 10m turnover and employ between 40 and 45 staff by 2014.

Andrew Coates and Greg Barker of Sheffield-based dealmakers Strategic Corporate Finance advised Digital Exchange on the acquisition.

Mr Coates said "This is a great deal for Digital Exchange and for Napier's customers and keeps Digital on course with their ambitious growth plans."

James Wilson, the investment Manager at Creativesheffield, Sheffield's development company, said. "It's great to see such a well-regarded Sheffield company strengthening its portfolio.

"This acquisition shows that Sheffield's extensive digital sector is continuing to thrive and prosper. Businesses have confidence in the digital organisations that operate here."