Kelway buys out rival Panacea
Mar 10 2009 by Tom Scotney, Birmingham Post
IT firm Kelway has bought rival Panacea Service, which has a Midlands office in Worcester, in a deal that will create a combined business with revenues in excess of £140million.
A corporate finance team at local company Baker Tilly advised on the deal structure and undertook the acquisition due diligence process, including looking at some of the ongoing tax structures for the combined group.
Kelway said the latest acquisition would see it delivering on ambitious growth plans after the company posted record revenues of over £55million for the first half of its 2008-9 year.
Phil Doye, the chief executive of Kelway said: “The acquisition of Panacea Services represents another dynamic move forward for Kelway and a key step in strengthening our position as the United Kingdom’s foremost mid-market IT reseller.
“We are pleased to welcome Peter Stroud (managing director of Panacea Services) to the board and with the addition of Panacea Services’ expertise in managed services and virtualisation, we see great opportunities for our existing clients.
“We will continue to seek out further complementary additions to the company, enabling us to fulfil our growth plans despite this tough climate.”
Established in 1990, Kelway does IT solutions for a wide range of customers, backed by unrivalled levels of service. Kelway’s account management and customer service teams are experienced IT professionals who offer a consultative approach to procurement.
Peter Stroud added: “We are delighted with a move that will be hugely beneficial to both parties. Panacea has gone from strength to strength since its inception in 1992 to its current position as an agile and profitable leader in managed services and virtualisation. Kelway’s investment in Panacea Services underscores our position as one of the UK’s premier value-added resellers and will enable us to continue to serve our loyal customer base as the leading IT infrastructure systems provider for London and to work with new customers throughout the UK.”
