Recently floated building services company Siteserv is set to spend up to €23 million on a new acquisition. The Dublin and London-quoted group said yesterday that it has agreed to buy scaffolding provider Easy Access for €20 million.

The deal allows for an extra performance-based payment capped at €3 million.

Siteserv said the company intended paying cash of €17 million and the remaining €3 million through the issue of 5.4 million of its shares.

The company has pledged to pay €17 million on completion and €3 million deferred in two tranches over the next two years.

The performance-related payment, which is separate from the deferred payment, will be in cash and is payable over the next two financial years to April 2009.

The company intends to borrow €15 million of the purchase price and fund the balance from its own resources.

Siteserv said that Easy Access managing director and shareholder Patrick Jordan would join its board.

Easy Access has bases in Cork, Dublin and Galway. The company provides formwork and scaffolding to building sites.

In the year to the end of February last, Easy Access had turnover of €16.5 million and earnings before interest and tax of €4.3 million. Net assets at completion are expected to be approximately €8.2 million.

Siteserv floated on Dublin's small cap IEX exchange and London's Alternative Investment Market (AIM) in mid-November. Since then, the company's stock has almost doubled in value from its flotation price of 55 cent.

Founded by Brian Harvey in 2004, Siteserv provides scaffolding and fencing to building contractors and others who need such services.