Public Services

Administrators dash hopes of swift 2e2 sale

David Bicknell Published 06 February 2013

Important information for 2e2 customers due to be posted today, administrators say


Customers of financially troubled system integrator 2e2 are now in discussions with the administrators FTI Consulting over future support for their IT operations.

It follows news from the administrators today that despite attempts to secure a buyer for 2e2's UK operations, they have announced 627 redundancies across the business.

Joint administrator, Simon Granger said: "Despite a significant number of initial expressions of interest in the UK business, we were unable to conclude a transaction which preserved the business as a going concern.

"Regrettably, this failure to conclude a sale coupled with a significant future funding requirement has resulted in large parts of the UK business being closed, resulting in the loss of 627 jobs. We are in discussions with customers to secure the ongoing operation of the data centres and service desks while alternative options are explored."

The administrators said that important information for 2e2 customers will be posted on the 2e2 website during the course of today.

Earlier this week it appeared that a sale would be swiftly completed which would have been good news for 2e2's customers, which include Sussex Partnership NHS foundation trust, Haringey community services and the NHS north central London cluster.

Haringey community services and the NHS north central London cluster planned to save up to a six-figure sum over the first 12 months of their contract with 2e2 when they signed the deal a year ago.

The two organisations, the commissioning arms of Barnet, Camden, Enfield, Haringey and Islington primary care trusts (PCTs), entered into contracts with 2e2 in June 2011 for services including desktop management, server management and some network management services. Jointly the deals are worth £4m. Before moving to 2e2, the organisations used an internally managed shared NHS service.

Another trust, the Sussex Partnership, only agreed a £37m IT refresh and unified communications deal with 2e2 last April. The agreement was due to run until 2019 and would see the refresh of the trust's desktop PCs, laptops, mobile services and printers.


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