IT recruiter RDL Group has announced that it intends to buy Systems Integration Group, another IT consultancy in a multi-million pound deal.

Woking-based RDL, which was floated on the Alternative Investment Market in 1999, values SIG at between £7.2m and £8.2m.

Figures from the last financial year ending 30 June showed SIG had a turnover of £26.3m and a made profits before tax of £455,000 over the same period.

In the year to June 2000, the company achieved a turnover of £17.8m and pre-tax profits of £218,000.

RDL will buy the whole of the issued and to be issued shares of SIG at between 50.7% and 62.9% above their market price as it stood on 22 August this year.

A statement released last week said the directors of SIG had unanimously recommended that the company’s shareholders accept the deal.

Andy Richards, RDL chairman and chief executive, said: ‘We have been looking to join forces with a business which adds to our own client list, and offers the opportunity to expand into complementary markets and geographical areas.’

RDL last year acquired IT recruiter M3, which specialised in the international e-commerce and SAP market.

SIG began life in 1987 as Sales Engineering and Computer Consultants Ltd within the IBM recruitment market, and formed a consulting and managed projects business in 1994.

The organisation now focuses more on permanent recruitment, which now accounts for 48% of gross margins. It also has around 250 contractors placed with clients.

RDL will retain the services of the SIG senior management team and will double the size of its sales team with the merger.

It also plans to integrate the companies’ administrative functions to save costs.