Xploite sells Anix to ACS for £31.5m in cash


Xploite sells Anix to ACS for £31.5m in cash

Microscope contributor

Xploite has sold its managed services subsidiary Anix to US firm ACS Business Process Solution Ltd for £31.5m in cash and in turn plans to use the funds to snap up relatively low-priced IT managed services outfits.

Last week the AIM-listed firm told the City it had received interest from a third party that could lead to a sale of Anix and this morning confirmed the Texan business process outsourcing specialist, which also owns Syan, had forged ahead with the acquisition.

The offer represents a multiple of 13.5 times EBITDA for the year ended 31 October 2008 and a cash profit of £10.5m however the sale is subject to a deduction for debt and working capital in the region of £3m.

"This very competitively priced and unsolicited cash offer provided us with an excellent cash return at a time of considerable market uncertainty," said Xploite chief executive Ian Smith.

He added the management team at Xploite intend on constructing another enterprise "at a time when valuations are very attractive".

Xploite's buy and build strategy in the storage market first took shape in February 2007 when it acquired specialist VAR Posetiv for £4.21m, followed months later by by the purchase of Anix Group Ltd for £10.96m. In October that year it spent £3.23m on Red Squared.

The last acquisition came in December 2008 when it purchased the assets of three managed IT services businesses from Cantono for £2m, though a dispute has arisen over the amount of deferred consideration that was due to be paid on 15 March.

When he embarked on the acquisition trail in 2007, Smith had planned to become a £100m managed storage services powerhouse, but according to its last filed accounts turned over more than £46m with Anix representing some 90% of sales.

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