Swedish integrator Proact is selling off its entire Spanish business to Madrid-based managed services firm Cibernos Group.
As part of the deal, Cibernos will continue to serve current Proact customers in Spain, and all staff will be offered the opportunity to transfer to Cibernos.
Cibernos is a consulting and managed services firm, with a focus on public administration, digital transformation, managed backup and network design.
The Spanish company has a turnover of approximately €50m, with 1,200 employees. It also operates in Peru, Ecuador and Mexico.
Commenting on Proact's decision to offload its Spanish business, the group's CEO Jonas Hasselberg claimed that Proact's local customers will be better served by a local player.
Proact claims that its Spanish subsidiary "is not a strategic fit". In line with its upated financial targets announced in December 2018, it will turn its focus to growing in its main geographic markets.
Earlier this year, Hasselberg told CPI that he is planning to make a string of acquisitions as Proact guns for 10 per cent revenue growth this year, naming the UK as a key target.
"We believe this agreement is the best solution for Proact. Transferring to Cibernos Group also presents a nice opportunity for our valued employees in Spain, and for customers who will be served by a local market leader with excellent credentials for successful delivery and quality support," he said.
Swedish-headquartered Proact has a group headcount of over 800 people in 15 countries across Europe and North America.
Proact lumps its Spanish business in its "West" region, which also includes Germany, the Netherlands and Belgium.
The region generated revenues of SEK 967m (€91.69m) in full-year 2018, and pre-tax profits of SEK 60.9m.
It was Proact's highest revenue region, after its home territory of the Nordics.
Proact's Spanish business was itself built through acquisition.
It paid €14m in 2011 to buy Databasement, an MSP that had revenues of €20m and a headcount of 52.
The divestment comes two months after Proact posted a mixed first quarter for its FY2019.
Revenues rose by almost 20 per cent, but profits shrunk. EBITA fell by 4.6 per cent to SEK 43.1m, while profits before tax slumped by an even greater fall by 19.2 per cent to SEK 26.8m (€2.54m).
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