Business support services group DCC has acquired electronic office supplies company Advent Data Limited, in a deal that could be worth up to almost €30 million.
DCC said it bought the company for an initial cash sum of €11.9 million, and could pay a further €17.5 million depending on its trading results up until March 2014.
The UK-based firm, which distributes consumables from suppliers such as Brother, Canon, Dell, Epson, Konica Minolta, Lexmark and Samsung, had adjusted operating profit of €4.5 million on revenues of €150.1 million in its financial year ended August 31st 2010. The company, which employs 111 people, deals with more than 1,000 customers every year.
DCC acquired Advent's entire share capital based on an enterprise value of €24.2 million, including average net debt of €7.2 million.
Chief executive of DCC Tommy Breen said the acquisition would complement DCC Sercom's reseller distribution business in the UK.
"This acquisition will significantly strengthen DCC's market position in the electronic office supplies market," he said.
DCC Sercom is the second largest unit in the DCC group.
Last August DCC announced plans to acquire French electronics distributor Comtrade for €11.4 million, with a deferred consideration of up to €9.8 million to be paid over three years. The purchase of the Paris-based company, which supplies electronic products such as iPods and MP3 accessories to major retailers in France, was designed to strengthen the presence of DCC's SerCom division in the French retail market.
In 2007, the company acquired the French retail distribution business Banque Magnetique.
