Online learning group Smartforce's purchase of icGlobal this week found favour with Davy, which saw it as a positive deal for the company.

With a blue-chip client list and revenues up 72 per cent in the six months to December last, icGlobal is seen as a good fit with Smartforce, with very little overlap. IcGlobal's icCampus learning management system was one of the best of 61 recently reviewed in terms of speed and flexibility in customisation.

Davy recommends Smartforce as a stock in which it is worth building a long-term position, although it admits it remains somewhat worried about the effect of any prolonged US slowdown on the short-term outlook for the company.

However, Davy feels the company is strategically moving in the right direction with an offering well ahead of the competition.