Managed service provider Node4 has won a £2.4 million (c $3.2 million) damages award against the founder of Microsoft Dynamics consultancy Tisski, after the High Court ruled the company was sold with problematic contracts that were collapsing as the deal was being finalized.

The case exposes how Node4’s £45 million (c $60 million) acquisition left it saddled with failing public sector projects that were hemorrhaging money, demoralizing staff, and prompting despairing internal messages about contracts being “beyond recovery.”

The ruling was handed down in Birmingham’s Commercial Court earlier this month and concluded that Tisski’s founder, Anna Assassa, and her fellow shareholders breached warranties in the 2022 sale.

The court found Node4’s acquisition vehicle, Atten Bidco, had been misled about the health of contracts with the National Audit Office (NAO), Aquila Air Traffic Management, and the Ministry of Defence. Together, those failures triggered damages of £2.4 million, with the bulk of it, £2 million, earmarked for the doomed NAO deal.

Judge Worster found that the NAO contract “could not readily be fulfilled… without undue or unusual expenditure of money or effort.” Assassa herself had privately described it as a “bugger of a contract” – a phrase the judge said was “not a bad approximation of the sort of contract this warranty was concerned with.”

Let’s be careful what we put on Teams just fyi (I know you are) as potentially one day someone else will own this history… hopefully

The court also found the Aquila contract had been terminated shortly before the sale, but that this was not disclosed. Aquila’s exit letter called the project “beyond recovery” and cited “vastly inferior documentation and deliverables, large gaps in Tisski’s governance and quality controls, and lack of a documented management system.”

The MoD work was also found wanting. Tisski had carried about £90,000 of “work in progress” for a project known as Operation Declutter, despite knowing there was no signed statement of work and little prospect of ever being paid. As one staffer put it in an email as far back as 2020:

“Just to confirm… the work done on declutter during the month of May wound up actually being free of charge and they never agreed they would pay for the stuff we did at risk?”

The court ruled the £90,000 sum should have been written off and that its inclusion in the accounts breached the warrant.

The judgment also noted that Tisski had been part of Microsoft’s prestigious “Inner Circle” for Business Applications, a status reserved for the top 1 percent of its 400,000 global partners, and that Assassa leaned heavily on this accolade as evidence of the company’s credibility when marketing the business to buyers.

The court also batted away arguments that Node4 had been “fairly warned” about the scale of the problems. Tisski pointed to a last-minute “RAG report” uploaded to the data room on the eve of the sale, but Judge Worster said the timing and vagueness meant it fell well short of fair disclosure. It flagged a dip in profit margin but offered no real explanation of the underlying contractual snags, leaving buyers without enough detail to grasp the true extent of the risks.

The ruling is packed with embarrassing fragments of chat logs, text messages, and internal emails that were dredged up in discovery.

Staff at Tisski openly vented about the NAO project. One message admitted: “The NAO budget is proving very challenging… We need to look into some costs and be creative.” Another message read: “Slightly fraught. It’s NAO I think, these contractual discussions are making all of us twitchy,” while a third summed up more starkly: “Just makes me want to bloody cry… so much hard work decimated by one project.”

Assassa told colleagues: “Let’s be careful what we put on Teams just fyi… as potentially one day someone else will own this history.” She also wrote: “I’ve fudged it… just sell exactly what you need to sell when you need to sell it.” The judge cited these messages as evidence that problems were known at the top.

One senior manager summed up the situation in late 2022 as a “perfect storm” of failing accounts, with NAO, Aquila, and MoD issues hitting simultaneously.

For Node4, the case is a technical win but reputationally awkward. Documents show due diligence missed multiple red flags, and that management pressed ahead despite signs of strain. Node4 claimed far more in damages, pointing to lost value from the deal as a whole, but the judge stressed that warranty damages are compensatory, not punitive, and must “reflect the bargain struck, not compensate for disappointed expectations.”

Founded in 2003, Node4 grew from a mid-market hosting shop into a broader IT services outfit, backed by US private equity firm Providence Equity. Acquisitions have been central to that push, with Tisski touted in 2022 as the jewel in a string of Microsoft Dynamics and public-sector consulting purchases.

The deal was sold as a springboard into major government accounts.

Node4 spokesperson Laura Blake told The Register: “Node4 has a long, trusted and valued relationship with the public sector, and we will continue to invest across our business to maintain this.” ®