IT service provider ComputerLand is buying the hardware maintenance business of IT Solutions for £1.7m, with £1.4m of that made up of goodwill and the rest for other assets, all to be paid out of the company's ample cash resources. Completion of the earnings enhancing deal is set for 19 January. The business will be integrated into ComputerLand's hardware support division, bring in a range of new customers and will boost ComputerLand's contracted revenues by around £2m. Only last week, ComputerLand turned in record interims for the period to 31 October, showing pre-tax profits up 21% to £900,000, despite a 4% wane in sales to £25.7m as predicted. Net cash was a bumper £6.1m, about a third of the market cap. Encouragingly, contracted turnover added 20% year on year to £5.5m, and chief executive Graham Gilbert believes that the trend for mid-sized companies outsourcing IT services will continue to supply revenue for the group. Alluringly for shareholders, ComputerLand boosted the interim dividend by 23% to 1.35p per share. For the current year to April, house broker Charles Stanley forecasts profits will rise from £1.5m to to £1.8m, giving EPS of 12.5p. ComputerLand, a GCI recommendation at 98.5p back in February, still looks excellent value due to its £6.1m cash pile and a p/e of less than 14 times. Add to your holding.