NetServices to be sold for £3.2m
NETWORK provider NetServices is to be sold to GCI Telecom Group for £3.2m.
The Salford-based company said it will seek shareholder approval for the deal, which includes the sale of WAN Services Limited, at a general meeting on May 18.
Shareholders representing 53% of the company have already agreed to vote in favour of the deal with Lincoln-based CGI, which trades as Edge Telecom and IPI.
Graham Norfolk, chairman of NetServices, said the disposal was the “best way forward” for the company and its shareholders.
He said: “At the Preliminary results in November 2009, we reported the various successes of the business, including becoming a Cisco Premier partner. However, despite a significant restructuring and a refocused strategy, revenues were difficult to predict and were taking time to come through. Therefore, we believe the assets of the business will perform better within the larger GCI group.”
He added that following completion, the company would invest in acquiring companies operating in the IT services, technology and communications sectors.
He added: “This is an area where Ian Smith, one of our Directors has significant experience, and we believe it has attractive near term opportunities for shareholders.”
Following completion, the company’s name will change to Accumuli plc.
NetServices also posted a pre-tax loss of £311,000 for the half year to February 28 (2009: £415,000 loss) on revenues which fell to £2.3m from £3.2m in the same period last year.
