Digital consultancy Reading Room has been acquired by Idox Group in a deal reportedly valued at £5.6 million.
Idox Group supplies software and services to the UK public sector and the acquisition sees it take on a consultancy that also works with a number of public sector clients including the NHS, Visit England and the Big Lottery Fund.
Idox is understood to only be acquiring Reading Room’s UK offices – in London and Manchester – and not its Asia Pacific subsidiaries. As well as its UK HQ, Reading Room also has offices in Singapore, Hong Kong and Australia.
According to the most recent Design Week Top 100 financial survey, Reading Room had a worldwide design fee income of £13 million in 2014 and a total global turnover of £14.2 million.
Reading Room’s UK offices accounted for £7.6 million of this fee income and £8 million of the turnover, according to the research.
Idox says the Reading Room acquisition is expected to result in “synergies resulting in cost savings across both businesses” as the consultancy is integrated into the group.
Idox says: “[Reading Room] has an international reputation for its award-winning and innovative approaches to strategic consultancy, design, and technical delivery.
“The acquisition is expected to support and accelerate the development of the new online platforms already being developed by the Group, including the Local Government iApply initiative, and will also support ongoing improvement in user-experience within the Group’s existing product suites.”
Idox chief executive Richard Kellett-Clarke says: “The acquisition of Reading Room is a major step in our strategy to build a sophisticated digital platform from which we can leverage our sector and domain knowledge to provide value adding solutions across the UK and Europe.”
Reading Room managing director Sarah Vick says: “I am delighted that we will be joining the Idox group with all the opportunities that can open up for all parts of the business. It is a great fit for us and the beginning of a new era for Reading Room.”