CS Group accepts management buyout offer

Finance | 23 Jan 2008

The Computer Software Group (CS Group) has announced it has accepted a management buyout offer from Guildford AcquisitionCo, a company created specifically for the offer. It has investment backing from HgCapital and includes current CS Group chairman and former Sage chairman Michael Jackson, alongside current CS Group CEO Vin Murria. HgCapital already owns IRIS Software and Exchequer in the UK, and there has been much speculation about IRIS being floated or sold.

Kate Hanaghan, an analyst for telecoms and software consultants Ovum, believes the buyers are eager to build upon CS Group's success to date. 'The team are looking to create a much larger organisation. This will require it to perhaps make some very large acquisitions involving a large degree of financial investment and management time. And, often it makes better sense to make this kind of transformation out of the public eye. To this end, we think it makes perfect sense to take the company private.'

Robin Fisk of CRM rivals Fisk Brett believes only time will reveal the full repercussion. 'There is clearly a bit of a corporate game taking place. Obviously Michael Jackson knows what he is doing as he has a track record of building up companies, but is this a place charities will want to invest in future given that its managerial setup is so fluid? It's clearly now going to have to look after its investors but will it also take responsibility for its customers?'

Directory: Fisk Brett
Who's Who: Robin Fisk

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