Daily News

View All News

UK – Recruitment sector IT outsourcer Kamanchi acquired by cloud computing company

24 July 2014

Kamanchi Limited, a specialist IT outsourcer and Hosted Desktop provider to the recruitment sector, has been acquired by Nasstar, a provider of Hosted Desktop cloud computing, for a total consideration of £2.5 million.

Of the £2.5 million consideration, £1.5 million will be payable in cash, and £1 million in new Nasstar Ordinary Shares.

Part of the cash element (£500,000) will be paid on 24 July 2014 with a deferred consideration of £1 million being paid on 14 October 2014 subject to confirmation of Kamanchi's net profit for the year ending 30 June 2014.

Raymond Pennie, Commercial Director of Kamanchi's success, will remain employed within the Group following completion. A qualified chartered accountant and recruitment industry specialist, he recently completed a four-year term as a member of the APSCoExecutive Committee, the trade body that represents the interests of the UK Professional Staffing industry, and is Chair of APSCos Technology Forum.

Kevin Winfield, Kamanchi's founding director, will remain with the company as a consultant for an initial period of three months and will leave the business thereafter.

According to Nasstar, the acquisition of Kamanchi is consistent with the company’s expansion strategy of organic growth augmented by selective acquisitions where the Company can add intellectual property, technical expertise and sector knowledge and contacts in its three main vertical markets; namely recruitment, legal and finance.

Since Raymond Pennie joined Kamanchi in March 2009, the business has focused exclusively on the recruitment market. It provides recruitment clients with a variety of IT systems and services, including fully managed Hosted Desktop, as well as development and consultancy services on buying and integrating new recruitment applications.

A Hosted Desktop commonly involves a browser-based connection to a desktop environment. The desktop is hosted, run, delivered, and supported from a central location, usually a secure data centre with high-quality and resilient connections to the Internet/cloud.