Accumuli identifies ‘buy and build’ targets

THE AIM-listed cash shell left behind following the disposal of Salford Quays-based Netservices in May has announced that it has identified the IT security market as the area in which it will pursue its  “buy and build” strategy.

Netservices’ former finance director Ian Winn took charge of the company, which was renamed Accumuli, following the sale of its core data networks installation business to GCI Telecom Group for £3.2m in May.

He then received backing from the shareholders of a business to use the proceeds to embark on a ‘buy and build’ strategy in the IT market.

The firm announced this morning that it has already identified a number of potential targets in the market – an area which it describes as “having the right mix of market opportunities, participants, growth potential and fundamentals in which to look for investment opportunities”.

It identified a Frost & Sullivan market report which said that spending in this area was set to increase over the next five years as a result of the proliferation of IT security threats caused by the internet and by cyber criminals.

It also argued that there is no dominant player in the market and that it could offer economies of scale to smaller operators by operating as a market consolidator. In the meantime, the firm said that it would continue to conserve its cash until deals are done.

Winn said that the company’s first deals were likely to be announced “sooner rather than later”.

 “We won’t be hanging around,” said Winn. “The days of inactive cash shells are long gone.

Accumuli also announced this morning that it has agreed a a deal with investor Ian Smith to reprice his existing share options. Smith put in more than £100,000 of money into the company in January and subscribed to options worth £2m at 8.7p a share. However, following the disposal of Netservices these options have been re-priced at 12p – a deal which Winn said is “closer to our net asset value”.

 The company has also appointed Manchester-based Zeus Capital as its nominated advisor and broker.