Organic growth into emerging markets is one of the primary aims of the newly enlarged technology recruitment business Nakama Group following technology staffing specialist Highams Systems Services Group proposed purchase of the group for £1.28m.

Under the terms of the acquisition agreement, Highams will acquire the sale shares for a consideration of £1.28m to be satisfied by the issue of 48.8m new shares.

The merger will see the company renamed Nakama Group, reflecting the enlarged group’s broadening of sector and international reach.

According to the company statement, through the merger key strategic objectives both of reopening a London office and expanding internationally have been achieved. The acquisition will deliver cost savings, risk diversity and the opportunity of cross-selling to both partner’s client bases.

Stefan Ciecierski, founder director of Nakama, will join the board as chief executive, with responsibility to develop the enlarged group internationally as well as in the UK.

Ciecierski told Recruiter: “Highams plc will become Nakama plc. The Nakama Group management team will be the largest group of shareholders inside Nakama plc. The objective of the deal is for the Highams business is to broaden out its product area and use the infrastructure that Nakama has to expand overseas. From a Nakama point of view, it gives Nakama the opportunity to expand into the IT sector, which is strongly related to what we do in the digital technology business.

“The plan will be to start developing the Highams product area within the Nakama framework. Highams is a UK company. We will be able to open in Hong Kong. We will also start to do business in London where Nakama is headquartered. We can immediately expand into that area.

“We also want to expand into non-finance areas because Highams is principally a finance technology recruitment business. We will start looking at further acquisitions.

“We are looking at organic moves in further areas of IT. The Nakama business is focused on front-end technology — it’s the technology you see on your computer screens and your mobile phone and IT is very much the back end, so we will grow into the software sector in the middle.

“We are looking at potential for growth in emerging markets. We are already in Hong Kong and we are looking at how we expand into mainland China and also into the Middle East so there are discussions about that. The future will be to expand internationally into the emerging markets and to develop our own range of product coverage within the business.”

A notice of a General Meeting on 13 October is being sent to shareholders today to seek their approval for the issue of the consideration shares.

Ken Ford, chairman of Highams, says: “I am delighted to announce this transformational transaction in the long history of Highams.

“Not only does the acquisition of Nakama allow us to broaden our sector focus, but it also provides a strong platform for the company to grow its customer base in the London market and to exploit opportunities internationally. I believe the complementary, yet distinctly unique nature of the two businesses, provides a range of benefits upon which both can leverage, but without undue duplication.

“I am furthermore very pleased Stefan Ciecierski has agreed to join our board as group CEO. His substantial experience running businesses in the recruitment sector and his global strategic direction makes him eminently qualified to drive the enlarged group forward and I very much look forward to our joint future success.”