HP has made a takeover bid for IT services company Synstar to help it expand its services arm in Europe. It offered £162.9 million, or £1 per Synstar share - representing a 28 percent premium on Synstar's Friday closing price of £0.78.
Synstar, based in Bracknell offers business continuity, data management, networking and multi-vendor support services with operations in Belgium, France, Spain, Germany, Luxembourg, Ireland and the Netherlands.
The acquisition of Synstar would be an attractive opportunity for HP to add additional services expertise and capabilities in these markets, the company said. According to Synstar's website, its multi-vendor services help companies deal with open architectures and the complexity of supporting numerous IT platforms as well as multiple vendor product lines.
HP already offers a range of IT services including business continuity and infrastructure services, hardware and software support and business applications. If its offer is accepted, HP said that it intends to retain Synstar's key management and operational staff.
Synstar has yet to respond on the likelihood of its shareholders accepting the bid. However, all of the company's directors have already accepted the offer in respect to their shares, which guarantees HP at least a 0.3 percent interest in the company. Furthermore, HP has received non-binding letters in support of its offer from certain institutional shareholders which would give HP an additional 30.2 percent stake.
Synstar has around 1,500 customers and reported a profit of £8.7 million on revenue of £223 million last year.
HP has scooped up a number of companies in recent months. In May, it announced it was acquiring two IT service management firms, ManageOne of Dallas and CEC Europe Service Management of the U.K. Earlier in the year, it also announced bids for management software companies Novadigm and Consera Software, saying that it intended to combine the companies' technology into its HP OpenView software.