Synstar takes over Avecia's IT in £18m deal

Synstar is to acquire 54 staff in an £18m, three-year deal to manage chemical and biotech manufacturer Avecia's IT services.

The contract also allows for the possibility of a three-year extension.

The support-services company has provided Avecia with maintenance and help desk services for a number of years.

An Avecia spokesman said: "We have made four business divestments over the past six to nine months, two of them big. Our IT requirement was therefore reduced and we wanted to ensure continuity of service.

"Our SAP system is as critical as any other part of the business – it processes our orders, puts out our invoices and makes sure that we get paid."

Under the contract, Synstar will take over the company's UK IT infrastructure based in Manchester and Scotland. As well as the 54 staff, it will also take over a number of contractors currently working at Avecia. The manufacturer also has a US factory and offices around the world.

Synstar has been trying to move away from its roots as a collection of European disaster recovery centres for some time and has been taking on more complex deals.

Kate Hanaghan, analyst at Ovum, said in a statement: "Further evidence of Synstar's progress with managed services includes the recent wins with West Midlands Police (£1m over 3 years) and CGG (£4m over 3 years). Furthermore, the pipeline at the interim mark is looking good, with 16 prospects each worth in excess of £1m per annum."

Avecia, once part of the ICI chemicals empire, is owned by a private consortium. It is one of the top contract manufacturers for the high end of chemicals and biotech. The company claims a world leadership position in the manufacture of colour for ink jets and is developing the colours for use in advanced, slat-screen mobiles. Its owners are organising the company for a sale to realise their investment.