IT recruitment specialist InterQuest Group plc has continued to develop its business after making its first acquisition in more than a year. The group bought Intelect Recruitment plc in a deal worth more than £3.7 million.

IT recruitment specialist InterQuest Group plc has continued to develop its business after making its first acquisition in more than a year. The group bought Intelect Recruitment plc in a deal worth more than £3.7 million.

Manchester-based Intelect, which provides recruitment services primarily to the software industry, is InterQuest’s second acquisition in the north of England.

The consideration was paid in £3.55 million cash with £170,000 in shares. The terms of the deal include a deferred payment of up to £500,000 in March next year. A further £400,000 is due in the following two years if certain financial targets are achieved.

This deal follows InterQuest’s acquisitions of PeopleCo Worldwide and Sand Resources in March and June of last year.

Under the terms of the acquisition agreement, Intelect’s managing director, David Di Domenico, has joined InterQuest’s board.

InterQuest is based in the City but also has branches in East Grinstead, Bexleyheath, Wickford, Tunbridge Wells and Harrogate. It provides contract and permanent IT recruitment through five divisions: Genesis, Insight, InterQuest (UK), SBS and ITmail. Last year, the group made a gross profit of £9 million from a £57.2 million turnover.

In the 12 months to April this year, Intelect reported a £6.8 million turnover with an audited pre-tax profit of £600,000.