The AIM-listed print management group completed the buyout of Stream's parent HFS Projects on 31 December in a deal worth up to 8.6m. It takes TripleArc's group sales to around 70m and its headcount to 350.

TripleArc chief executive Jason Cromack said the move into "data-centric solutions" had always been part of the group's strategy, adding that the deal positioned TripleArc to pick up contracts in the 5m-10m bracket and was "perfect if we want to attack the financial services sector".

"This increases our scale which means we can go for slightly larger contracts, but we're not going for the 35m Williams Lea-type contracts that's not what we're about," he said.

HFS comprises Cirencester-based Stream Direct Communications (formerly Brann Direct Communications), acquired by HFS last April, and StreamGWC (formerly GWC) in Swindon, which HFS bought in November. The two are about to be merged at StreamGWC's two Swindon sites to form a 17m group.

Chairman Mark Scanlon said that the acquisition of GWC accelerated his plans to build a medium-sized direct mail operation that could be merged with another player.

StreamGWC will operate as an autonomous business unit and will retain its existing management, "partly because there is an earn-out and they've got to be very much in control of that business. And that gives them an added incentive to make it work," said Cromack.

TripleArc has paid an initial consideration of 639,000 in TripleArc shares; a further 8m may be payable dependent upon the performance of HFS in the two-year period to 31 December 2006.

Story by Lauretta Roberts