4Front Software International Inc of Denver, Colorado, has acquired Compass Computer Group Ltd, bringing to five the number of companies in its UK susidiary, 4Front Group Plc. The technology investment company acquired Compass, Newbury, Berkshire, for an undisclosed sum in cash and shares. This is the first significant acquisition made by the company since Ken Newell took over as chief executive of the UK division last year. The acquisition is in line with the company’s philosophy of growth through acquisition and organic development. Compass’s core business is in specialist sales and distribution, an area already covered by another 4Front company, Watford, Hertfordshire-based Xanadu Systems Ltd, specialist in X terminals. Newell said the new business complemented Xanadu’s operation, and that far from there being any clash of interests between the two companies, there were excellent cross marketing opportunities for them. Compass Group had a turnover of ú12m, equal to that of the rest of the 4Front Group combined, so the acquisition has effectively doubled 4Front’s revenue. The company said that in spite of some overlap in Compass and Xanadu’s business, it will not be losing any staff, and that given its 30% to 40% growth targets, the group expects to be recruiting staff rather than shedding them. Other companies in the 4Front Group are K2 Systems Plc, a systems integration company, hardware maintenance company CI Support Ltd, and ActionTrac (UK) Ltd, offering help desk systems and services worldwide.
