Electronic Data Processing Plc (EDP), the Sheffield, UK-based IT services provider, saw its share price rise 18% yesterday to 83.5 pence when the company announced plans to launch a free ISP service for its clients and speculation grew that it was about to launch a bid for struggling financial software company Pegasus Group Plc.
EDP, which specializes in the wholesale sector, expects to generate a significant new revenue stream from its ISP operation that will enable its 800 customers to set up online services. This will be integrated with EDP’s back office software and the company claims it will offer customers substantial savings in the cost of setting up and running their own web sites.
Last week, EDP revealed it has bought just over 7% of the share capital of Pegasus, the struggling Northamptonshire, UK-based financial software vendor, for investment purposes. Shortly after, Pegasus says it was is in talks with a number of different parties which may lead to a merger or takeover of the company. Dismal results issued last month for the first half of the current year left Pegasus vulnerable to a takeover (CI No 3,722) and EDP is favorite to make a bid. Pegasus was hit by the cost of upgrading its software to 32-bit Windows compatibility but the move gives it a product likely to be attractive to other vendors.
