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HP Syncs With Synstar
HP announced this week its bid for Synstar, a large UK-based IT consultancy, in a move aimed at growing its European presence, for around $300 million. The offer represents a 28% premium over Synstar's Friday closing stock price of $1.43.
With 1,500 customers in eight European countries, Synstar helps its clients manage IT infrastructure, providing services that deliver business availability across desktop configuration and data center environments. The vendor also designs and implements IT risk management strategies.
However, the companyís core business is in continuity services, a growing IT market segment that delivers at lest the promise of continued IT functionality in the event of emergencies and disasters.
HP has acquired several properties in recent months, including ManageOne of Dallas and CEC Europe Service Management in the UK.
Earlier in the year it also announced it purchases of management software companies Novadigm and Consera, saying that it intended to combine the companies' technologies into its HP OpenView software product line.
According to HP execs, Synstarís 2003 revenues were about $410 million, with rather lean profits of $16 million. So the purchase price represents a rather rich 19x multiple of last year's Synstar's net profit.
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