LONDON (ShareCast) - Matchtech, the AIM-listed engineering staffing firm, is said to be expanding its services through the acquisition of Provanis, a niche technology recruitment business.

Application Services, which trades as Provanis, will be bought for a cash consideration of £4m funded from Matchtech's existing lending facility.

London-based Provanis specialises within the Oracle Applications marketplace and is focused on low-volume, high-margin international contract recruitment with large blue-chip companies.

"The acquisition of Provanis is an important step forward in the growth strategy for the group," said Chief Executive Adrian Gunn.

The bolt-on purchase is expected to complement Matchtech's newly rebranded tech business, Connectus, and is said to broaden its services in the global Enterprise Resource Planning (ERP) recruitment market.

Gunn said: "We are excited by the opportunities it creates to broaden our capability within the global ERP recruitment market, to generate additional contract opportunities through cross-selling Provanis's expertise to Matchtech's wider client base, and to enhance Provanis's existing client relationships through the proven permanent recruitment capability of the group.

"This transaction fits well with our stated acquisition criteria - namely small, bolt-on deals involving high margin contract recruitment businesses that complement our existing activities in specialist engineering, technology and professional services staffing."

BC

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