DCM Services, formed nine months ago in management buy-in from BellSouth’s Dataserv Maintenance and Retail Division (CI No 1,307), has acquired a personal computer maintenance company, Data Dynamics Ltd. DCM won’t reveal the cost of buying Data Dynamics’ maintenance and engineering business, but the two divisions are profitable on a turnover of around UKP1m. DCM itself is backed by venture capitalists Hillsdown Investment and Kleinwort Benson which own 44.4% and 22.2% respectively, but DCM’s chairman, Peter Clair, says that he didn’t have to call on his backers to acquire Data Dynamics. Which isn’t bad given that DCM was running a loss when he set it up with Joel Jervis, the former head of Systems Reliability’s service arm. They originally projected a loss of UKP1.5m for the first year of trading, but now expect to break even on a UKP6.5m turnover. DCM is split into maintenance and retail divisions, and the first represents around UKP4m. The company sells point of sale equipment based on IBM’s 4680 machines with third party software from the North Carolina company, Post Software International. The client list includes Texas Homecare, Boots, Safeways, and largest contract at just under UKP1m, is with Iceland Frozen Food. DCM emphasises that its maintenance activities are totally oriented towards personal computers and networks, and if a client has mid-range or mainframe equipment, the company will subcontract the work. It has subcontracting agreements with Technology Plc and DSI, and expects these two relationships to bring in some UKP5.5m over the next year. Clair is keen to make another acquisition within the next six months, but stresses that it must fit into the personal computer and networking mould. He acknowledges that general economic conditions are going to create some bargains, but you get what you pay for, and he isn’t keen to acquire a company with few management and financial controls. He believes acquisitions are the fastest way to grow, and looks for DCM to be a UKP15m company by September 1992.
