Business Weekly - Cambridge, UK

2e2 said that the acquisition broadens the firm's range to provide managed services and create a £250m organisation.

Compel comprises two divisions: an IT consulting, design, supply and implementation firm, serving business and technology; and an IT rental arm, branded Hamilton Rentals. It generated £45m in revenues last year, has 10 operating centres and over 400 employees.

The board of Compel have deemed the offer to be 'fair and reasonable' and have recommended the shareholders to accept it. The shareholders will still receive an interim dividend of 0.7p on March 9, as previously announced.

“This transaction brings together two strong and established names in the IT services industry and creates a platform for further growth for the enlarged group. We believe this creates an exceptional opportunity to engage more broadly with our customers and create a compelling force in the UK market,” said Eric Priestly, 2e2 chairman.