Harvey Nash, the London-based information technology staffing and services firm, has announced the acquisition of Crimson Limited, a UK-based IT solutions and recruitment company.

Crimson, founded in 2000 specialises in digital and technology transformation solutions as well as offering a full range of IT recruitment services, both permanent and contract. Crimson shareholder directors, Robert Mallaband and Simon Chave will continue as CEO and CIO of Crimson respectively, remaining with the business along with the current management team, post-acquisition.

"I am delighted to welcome the team from Crimson into the group,” Albert Ellis, CEO of Harvey Nash Group, said. “This is a transformative acquisition firmly establishing the group's business as the leading full service technology talent provider in the UK's IT and digital sectors.”

“The breadth and depth of technology expertise and talent resources offered by the combined businesses is unrivalled in the market and we expect to achieve cross selling synergies over the coming months,” Ellis said. “In particular, our world class Vietnam offshore IT project and software development service will complement Crimson's already established and well respected onshore consulting teams. The announcement demonstrates our commitment to executing our stated strategy of delivering growth, both organically and through acquisitions."

Under the terms of the acquisition, Harvey Nash will acquire 100% of the shares in Crimson for an initial cash consideration of £6 million plus an adjustment for working capital on completion (expected to result in a payment of no more than £100,000). Deferred cash consideration of up to £4 million will be paid in two equal tranches on the first and second anniversary of completion with 50% guaranteed and the remainder subject to achieving a minimum level of EBITDA in each year of £1.5 million (or an aggregate over 2 years of £3 million or more).

In addition to the initial consideration and the deferred consideration, an earn-out of up to £ 5 million will be payable in cash over the period of three years following completion. The total maximum consideration payable for the acquisition of Crimson is up to £15 million.

"Harvey Nash is well established with a unique portfolio of services and strong brand, and was the obvious choice when we were seeking a strategic partner to support us as we accelerate our own growth,” Rob Mallaband, CEO of Crimson, said. “I am delighted that Crimson is now part of the Harvey Nash Group and am confident that substantial success and opportunity lies ahead now that we have the backing and support of a much larger group with a global footprint."