London-based recruitment and contract programming and analysis agency Computer People Group Plc yesterday announced plans for a major expansion of its US operations with the proposed acquisition from Sterling Software Inc, Dallas, of its Atlanta based US Professional Services Group for an initial $8.5m and up to $5.5m more depending on the performance of the unit over the 18 months to the end of 1989. Computer People will raise part of the cash via a conditional placing of new shares at 181 pence to raise UKP2m; the shares were at 189 pence ahead of the announcement – implying about 10% of the expanded equity, which means that existing holders should be offered a pro rata crack at the new shares. The buy, expected to be completed in mid-August, will lead to a major expansion of Computer People’s US business: it says it did a profitable UKP10.6m – $18m at the current rate, 29% of its UKP36.7m total business – in the US in 1987, while the Professional Services Group had turnover of $22m last year, with 300 staff on its books. Computer People went public with a full listing at 230 pence at the height of the bull market last year, and its offer was heavily oversubscribed.
