Accumuli acquires Boxing Orange for £7.5m
ACCUMULI, the Salford IT security firm, has notched up its third deal with the £7.5m cash and shares acquisition of a West Yorkshire IT business.
It has bought Garforth-based Boxing Orange which specialises in security products and managed security services. Accumuli will pay £2.7m in cash and issue 31 million shares at 8.75p. A further £2.1m will be paid in cash if the firm hits certain targets.
Salford Quays-based Accumuli – which is listed on AIM – announced in July that it wanted to create a group specialising in IT security and network management following its £3.2m disposal of the Netservices business in May.
It has since bought Hampshire-based telecoms firm Tuscany Networks for £4m and spent £2m on Berkshire-based Fujin Group, a specialist security systems integrator, with a particularly strong focus on European mobile and broadband service providers.
In the year to March 2010 Boxing Orange had earnings before interest tax, depreciation and amortisation (ebitda) of £714,000 and pre-tax profit of £521,000 on sales of £3.5m.
Accumuli said the deal provided it with an established and profitable business which offered cross-selling opportunities.
Chairman Graham Norfolk said: “We are delighted to announce the third acquisition in our stated strategy of building a managed IT security services business. Boxing Orange provides the company with an established, profitable, managed service capability with significant opportunities to cross sell complementary services across the company’s customer base. We look forward in the near future to providing further updates upon our acquisition strategy.”
The vendors were advised by Christian Hunt at Leeds law firm Clarion and John Holroyd of accountancy firm Mazars, also in Leeds.
