ControlP has acquired the assets of Documedia, which went into administrative receivership last month, in a deal worth 1.65m (PrintWeek, 26 October).

"We have known Documedia for some time, as we have been following anyone who has been developing e-commerce software for the print industry, and this was one deal we wanted," said ControlP chairman Warren Tayler.

Tayler said the acquisition made sense as there "were a lot of synergies between the two groups", and "it provides an excellent fit".

ControlP has bought the Documedia businesses and 130 staff at three sites: Cheltenham, Bury St Edmunds and Solihull.

It will run it as a separate company and retain the Documedia name.

Allan Graham, the appointed receiver at KPMG, said: "I am delighted to have secured the successful sale of the Documedia Group, and as a going concern to save 130 jobs, in what are considerably tough times for the printing industry."

Documedia will operate its own branded online service, while ControlP will continue to market its own e-commerce systems.

As part of the deal, ControlP can, if it deems necessary, recoup a large portion of the investment by disposing of the premises acquired, and relocate the operation to leased premises or enter into a sale and leaseback agreement.

"Cash is king at the moment, and after the deal we are still left with 3m in the bank, but this gives us the option to free up cash if required for further acquisitions," said Tayler.

Documedia appointed administrative receivers from KPMG on 18 October. It also closed its London office, making 22 staff redundant, after experiencing on-going cashflow problems.

Story by Andy Scott