Newcourt, the security services and recruitment group, has paid €2.685 million for the People Group, a Dublin-based recruitment company. The acquisition, which is being made by Newcourt's recruitment subsidiary, Sigmar Group, includes certain profit targets.

If these are met, an additional sum, capped at €5 million, may become payable. The People Group, which is managed jointly by Tom Burgess and David Allan, reported pretax profits of €451,000 on turnover of €1.6 million last year.

Specialising in marketing and sales executive recruitment, it had net assets at the end of December of €402,000. Its existing management will remain with the group and it will bring 80 recruitment consultants to Sigmar's team.

The acquisition will be funded through Newcourt's existing resources and is expected to be immediately earnings enhancing.

Newcourt's chief executive, Ted O'Neill, said the acquisition of the People Group would strengthen the service offered by Sigmar in the marketing and sales area.

It is Sigmar's second acquisition this year, following the recent purchase of Kenny-Whelan & Associates.

Shares in Newcourt, which are listed on the IEX smaller companies market, closed unchanged at €1.29 yesterday.

Newcourt, which releases its 2005 results on Friday, employs 1,500 people across Ireland and operates through a range of businesses including Federal Security, Central Monitoring Services and Sigmar Recruitment.