Proactis big player after £2.9m deal

Wetherby-based Proactis said EGS has more than 70 clients, principally in the public sector, that use its hosted software to control more than £2.5bn of spend through 40,000 active suppliers.

The two companies will cover 200 public sector organisations controlling over £15bn of public spending across approximately 150,000 suppliers.

Proactis’s CEO Rod Jones said: “EGS is an excellent strategic fit for Proactis, creating what I believe will be the largest independent eProcurement solution provider in the public sector specifically and the UK market generally.

“Its substantial scale, level of profitability and available synergies will immediately benefit the wider Proactis business.”

He added that EGS’ substantial expertise in the local government and higher education sector, coupled with Proactis’s expertise and solutions, means that customers will be able to enhance their procurement effectiveness and extend collaboration with their suppliers.

The net cash consideration is expected to be approximately £2.2m as EGS will have £700,000 of cash at completion.

Completion of the acquisition is expected to take place at the end of this month.

Proactis will fund the acquisition from a combination of bank debt and its own cash resources.

Analyst Andrew Darley, at FinnCap, said EGS is a well regarded competitive eProcurement solution provider.