Megabuyte - Technology sector intelligence

Following on from the recent SpiriTel acquisition (see here for our research notes), Daisy has acquired NEG, a specialist provider of communications services to doctors’ surgeries, for £23.5m, or an estimated c5.5x current EBITDA. This is a very high quality and accretive acquisition for Daisy, with NEG benefiting from long contracts, and good growth, profitability and cash flow. Given that Daisy’s acquisitions, like buses, seem to come in twos and threes, we would expect the company to now focus on the integration of SpiriTel and NEG, suggesting no further large acquisitions for the time being.

System C reassures with bullish outlook for Medway

Following its profit warning in September, healthcare software and IT services provider System C has reassured the market with an update saying that current trading is in line with revised expectations. Interestingly, the pipeline for the company’s Medway PAS (Patient Administration System) product is said to have picked up substantially as the National Programme has wound down and decision making has been pushed back down to hospitals. Demand for the LiquidLogic social care products is also said to be holding up well.

Stronger balance sheet leaves Northgate in positive mood despite weaker public sector demand

As HR BPO and public sector IT Group Northgate Information Solutions reaches the third anniversary of its KKR backed P2P, we had our annual catch up with Group CEO Chris Stone to talk through the 2010 results as well as the outlook and strategy for the group going forward. Premium subscribers can read our analysis of the results, current trading and strategy here and Premium Plus subscribers can also see updated financials for Northgate here.

OMG – perhaps not ‘astonishing’ but certainly impressive

Motion capture technology specialist OMG has reported full year results this morning which snow a remarkable turnaround in financial performance after a tough year in 2009. Group revenues for the year to September were up 19% to £31.2m and adjusted PBT jumped from £1.1m to £3.3m. Whilst we’re not sure of the merits of using the words ‘astonishing stuff’ in the title of the Chairman’s statement (the miracle of new life, landing on the moon; these are astonishing things, not really the results of a small technology company), they are certainly impressive. Read more of our thoughts on the results in Newswire Plus.

Datatec builds US presence

Continuing on its renewed acquisition agenda, ICT services group Datatec has announced the acquisition of US based Cisco gold partner Network Infrastructure Corporation. NIC, which generated $20m of revenue last year, will be integrated into Logicalis’ US operations. No consideration is disclosed for the acquisition. Having decided that the worst is now over, Datatec’s has certainly got the bit between its teeth on the M&A front; this is the company’s fourth acquisition since September.