Dundalk technology company Intact Software has acquired British software house Blue Rock Systems, 16 years after the Southampton-based business started reselling, implementing and supports its enterprise resource planning (ERP) systems.

Announcing the move, Intact CEO Justin Lawless said the acquisition would strengthen the company's market share across its target verticals and bolster its workforce to support ambitious growth plans in Ireland, the UK and globally.

"The acquisition of Blue Rock Systems is part of Intact’s strategy to become the leading provider of ERP and business software solutions in the merchant and distribution sector," said Lawless. 

“This important development adds to our strong customer base and involves a team of highly skilled individuals, with deep software industry expertise, who will enhance customer service and support our growth plans.”

Intact has self-funded the Blur Rock purchase, requiring no outside investment, and the full Blue Rock team will be retained as part of the deal, which will see Intact's workforce swell from 200 to 243 staff across Ireland and the UK.

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Turnover at Aptech Business Systems Ltd, trading as Intact, increased to €13.2m in 2020 from €11.6m the previous year while its gross profit margin widened from 51% to 61%, and EBITDA was €1.6m.

Net cash generated from operating activities widened to €2.7m from €670,000 in 2019, and period-end trade debtors were €2.6m compared with €2m a year earlier.

Speaking to Business Plus last month, Lawless said Intact made revenues of €17m last year and projected potential turnover of €24m in 2022, depending on the acquisition of Blue Rock, which itself has experienced robust revenue and profit growth in recent years.

"Blue Rock Systems grew revenue 30% last year, returning double digit profit growth," said Lawless. "Its 43 staff and senior management are all vastly experienced in the software industry and, working collaboratively as part of Intact, will add immense value to our product and service offering.”

Blue Rock was established in 2005 by managing director George Troullis, sales director Glen Jewell, and commercial director Lance Nolan.

Troullis will oversee business incorporation, complementing Intact's senior leadership team to facilitate collaborative integration of Blue Rock's people, processes, systems and cultures as well as ease the transition for its 150 UK clients.

"The synergy is excellent, and the combined expertise will strongly boost customer resources," Troullis said. "This acquisition will see existing and new customers benefit from an expansion of services and improved processes, with an integrated team sharing best practice to ensure we maximise Intact market performance.”

Blue Rock Systems already implements and supports Intact-developed systems across a network of UK trade customers, and it has developed complementary products for e-commerce, POD scanning and on-line auctioning.

Earlier this year, Intact invested in an expanded UK headquarters in Hemel Hempstead, and the Blue Rock purchases is its second acquisition of a business in England after it bought value-added reseller Ramtac in 2016.

Intact , which has grown five-fold in the past decade and anticipates further growth of 60% this year, plans to add over 100 jobs each year for the next three years amid targets of 5,000 new users per year for its target verticals alongside the launch of new products.

Grant Thornton and Flint Bishop advised Intact on the Blue Rock deal and strategy.

Photo: George Troullis (left) and Justin Lawless.