LONDON (ShareCast) - Employee benefits firm Personal Group has purchased Lets Connect IT Solutions for 12m pounds.

The company will pay £6m in cash at completion, followed by an earn out over two years for the remainder of the consideration, dependent on performance.

Lets Connect provides salary sacrifice technology to large enterprises in the private and public sector. The business has grown from £1.7m in sales in 2010 to £20m in the year to August 31st 2013 with a pre-tax profit of £0.4m.

Personal Group said the acquisition will enhance its salary sacrifice offering, allowing it to cross-sell to Lets Connect's blue chip customer base of more 100 companies which have, in total, a potential employee base of 600,000.

“The board is confident that Lets Connect's product offering will resonate strongly with Personal Group's existing customers and, given the current separate customer bases of the two companies, there is considerable opportunity for cross-selling,” the firm said.

RD

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