Parseq (LON:PSQ) (which recently changed its name from Intelligent Environments after its reverse acquisition of Documetric Ltd.) made further acquisitions in the fixed assets, staff and customer contracts of Avance Group Limited and Avance Rutherglen Limited. Avance is a Customer Relationship Managment (CRM), credit management outsourcing and business intelligence provider that serves the utilities and telecommunications industries. Parseq paid £530,000 in cash for the Avance assets and will assume an additional £345,000 in customer and employee liabilities. Including transaction costs, management expects the acquisition will cost a total of c. £1.3 million and require a further £1.1 million in working capital before becoming cash positive sometime in 2011 - to be funded through existing cash and credit.
The assets being acquired from Avance generated £11.9 million in sales and an operating profit of £500,000 in the year to Februrary 2010. The rationale for the acquisition is that Avance's products and technology can be deployed through Documentric's operational infrastructure (with which it will be integrated), thus improving its utilisation. The acquisition may also present opportunities to cross sell Parseq's mobile products into Avance's telecom and utilities customer base.
