UK systems integrator Compel Group Plc yesterday made a big diversification by buying Hamilton Rentals Group Ltd for as much as 14.5m pounds, and issued an 11-for-10 rights issue at 160 pence to pay for it with a bit left over – it will raise about 15.2m pounds for the company. Compel says it bought Hamilton, which offers computers on short-term rentals, and is also a corporate systems reseller, with an initial consideration of 13.69m pounds cash, and will pay another 850,000 pounds after the year to June 30, depending on Hamilton’s performance. The enlarged group will remain focused on corporate customers and will materially benefit from its increased size, breadth and coverage, said Neville Davis, chairman and chief executive of Compel. The rights issue is being underwritten by Societe Generale Strauss Turnbull Securities Ltd. Compel says that Hamilton made operating profit of 1.3m pounds on revenue of 17.6m pounds for the six months to June 30.
