Harvey Nash swoops for tech recruiter Crimson
IT consultancy and technology recruitment company Crimson has been snapped up by Harvey Nash Group in a transaction which could be worth up to £15 million.
Founded in 2000, Crimson specialises in digital and technology transformation solutions and also offers a range of IT recruitment services, both permanent and contract.
The Birmingham-headquartered business works with blue chip UK companies in sectors such as utilities, retail, hospitality and telecommunications.
The acquisition will support Crimson's scale-up ambitions, including entering overseas markets while increasing the suite of services and expertise the combined business can offer to its existing and new clients.
"Harvey Nash is well established with a unique portfolio of services and strong brand, and was the obvious choice when we were seeking a strategic partner to support us as we accelerate our own growth,” Crimson CEO Rob Mallaband, who will remain in his current role, said.
“I am delighted that Crimson is now part of the Harvey Nash Group and am confident that substantial success and opportunity lies ahead now that we have the backing and support of a much larger group with a global footprint."
Albert Ellis, chief executive of Harvey Nash, said the “transformative acquisition” firmly establishes the group’s business as “the leading full service technology talent provider in the UK's IT and digital sectors”.
He added: “The breadth and depth of technology expertise and talent resources offered by the combined businesses is unrivalled in the market and we expect to achieve cross selling synergies over the coming months.”
Under the terms of the deal, Harvey Nash will acquire Crimson for an initial cash sum of £6m. A deferred consideration of up to £4m will be paid in two equal tranches on the first and second anniversary of completion and an earn-out of up to £5m will be paid over a period of three years.
Of the three shareholder directors, Robert Mallaband and Simon Chave will continue as CEO and CIO of Crimson respectively, remaining with the business along with the current management team.