Xploite back on the acquisition trail

Xploite has acquired four loss-making managed services businesses from Catono Plc for a total cash consideration of £3m.

Xploite has acquired four loss-making managed services businesses from Catono Plc for a total cash consideration of £3m.

The deal includes security consulting and managed services provider Blue River Systems Ltd, acquired by Cantono in November 2006, and three other managed services firms, based in London and Middlesex.

"The acquisition of these four units continues to build our managed services business, strengthens our position in the UK mid-market managed services sectors and provide considerable opportunities for cross selling," said Ian Smith, chief executive at Xploite.

The deal is conditional on receiving approval from Cantono shareholders and is expected to complete no later than 15 December.

The four businesses employ 70 staff and in the year to 31 May 2007, the most recent audited accounts, they made an operating loss of £6.95m on revenues of £4.47m.

Smith added, "The acquisition is expected to be immediately profitable, and will become earnings enhancing after integration which is anticipated to take eight weeks."

With an acquisition happy track record in the UK channel, Ian Smith acquired storage specialist Posetiv in February 2007 and infrastructure reseller and manager service provider Anix Group in April the same year.

In October last year Xploite acquired Itheon, a software vendor supplying business service assurance and hardware solutions, which it sold this month and hosting company Red Squared in February 2008.

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