Keltec and Progess become one

UK resellers Progress Computer Systems and Keltec are to merge. The new company will be known as Keltec Progress, and will have a turnover of £40m per year.
The company - which will focus on providing multi-platform high performance systems, enterprise software and support services - will seek to float on the London Stock Market once revenues hit the £100m mark. It estimates that will happen in three to five years.
John Fison, who becomes managing director of Keltec Progress, told Silicon.com: "A staff share incentive scheme should enable us to recruit and hold on to key employees."
As for the combined company's market position, he added: "We [Keltec] were the number two Digital reseller, but since the Compaq acquisition, we'd slipped to somewhere in their top ten. This should grow our market share, seeing us move up a notch or two."
Nick Offin, Compaq Channel Sales Director, endorsed the deal, saying it represents "a bigger opportunity for the new company to sell Compaq's high-end product range".
Keltec, which was approximately double the size of Progress in terms of staff and annual turnover, has traditionally been strong in the City, whereas Progress counted companies such as Mars, Nestle and SmithKline Beecham among its customers.
Fison said the merged company, which will resell Compaq and Sun products, will look at different ways of expanding. "We see ourselves making more acquisitions going forward, in addition to organic growth," he said.
The companies said they have been discussing the merger for the past five months. KPMG Corporate Finance advised Keltec on the merger.