HDS Network Systems Inc, the network computer and X terminal maker says its wholly-owned subsidiary, Information Technology Consulting Inc (ITC) has made its second acquisition in rapid succession, or at least it will do if it gets its initial public offering away successfully. ITC has entered into an agreement to acquire fellow King of Prussian The Reohr Group Inc, a consulting a staffing company that had revenues of around $16.4m, with pre- tax profit margins of around 20 percent of revenue, according to HDS. The idea is to float ITC to raise the capital to acquire Reohr for an IPO. VP finance Scott Holland said underwriters have not yet been signed and the IPO is probably a few months off yet. It hopes to have three or four companies in the stable before then, having signed to acquire Global Consulting Group, a Raleigh, North Carolina consultancy a month ago (CI No 3,091). HDS intends to retain a significant interest in the public ITC. Reohr currently employs some 200 consultants. The main criteria for acquisitions is not necessarily to roll the consultants’ clients over to its @workstation network computers, but Holland said Global Consulting had one such customer, and it is likely to be a factor in any acquisition.
