Proactis goes Due North to strengthen group in £4.5m acquisition

'‹SOFTWARE FIRM Proactis has'‹ bought e-procurement solutions provider Due North Limited from its parent company Access Intelligence for £4.5m'‹ in cash.'‹

Wetherby-based Proactis said the ​deal ​will ​enhance its position as a leading provider of e-procurement systems to the UK market. ​Proactis​ ​currently serves over ​5​00 clients​ and the deal will​ add ​a further ​300 ​clients. The acquisition is expected to be immediately earnings enhancing.

​​Rod Jones, CEO of Proactis, said Due North is an “excellent strategic fit” ​and will ​consolidat​e​ the group’s position as the largest independent e-procurement solution provider in the UK.

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“Due North’s market penetration is substantial and should immediately benefit the wider Proactis business. I look forward to working with the team at Due North to grow the business and provide the wider client base with our end to end solutions​,” he added.​​

​Due North has annual revenue of £1.6m and Mr Jones said the acquisition will provide substantial cross-selling opportunities to Proactis.

The deal is in line with Proactis’ strategy of ​boosting organic growth with selective acquisitions.

York-based Access Intelligence said the divestment of Due North ​i​s in line with its ​goal to focus on Software-as-a-Service (SaaS) solutions and said the net proceeds of the disposal will be used to strengthen its balance sheet.

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​Analyst Andrew Darley at FinnCap said: “Proactis has announced the acquisition of Due North, a competing and respected provider of e-Procurement Systems with substantial UK public sector expertise.

“Encompassing 20,000 users, 200,000 suppliers, and £100bn annual customer spend through the Due North system, the £4.5m acquisition contributes more than 300 customers to take Proactis’s customer stable to more than 800.”

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