Original URL: http://www.channelregister.co.uk/2008/04/01/emc_buys_conchango/
EMC buys Brit Microsoft shop
Kerching for Conchango shareholders
Posted in Enterprise, 1st April 2008 20:15 GMT
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EMC is buying Conchango, a UK-based Microsoft-shop for £42m ( $84m). That's a little more than '07 revenues (£38m) and 30 times pre-tax profits (£2.8m) for the AIM-listed firm.
Conchango's "300 professionals" supply IT consulting services for the likes of Tesco, Virgin Atlantic and SKY. It builds big ecommerce websites (http://conchango.com/investing/description-of-business/) too.
Conchango bosses Mike Altendorf and Richard Thwaite will run the show post acquisition, this time as heads of EMC's European Microsoft consulting business, within EMC's Consulting & Solutions Integration Services (CSIS) organization. How will that fit on one business card?
EMC has 12,000 worker bees in its global services division. This gives it a useful safety net in the wake of the inevitable fall in prices in its core storage business. Of course, it could always sell more of VMware (http://www.theregister.co.uk/2007/10/25/emc_announces_q3_2007_earnings/), the virtualization wonder stock, before that price bubble bursts. ®