Innovise acquires Abilitec, a specialist in managed IT services.

The board announce that the Company has agreed to acquire the entire issued share capital of Abilitec Holdings Limited for a consideration of up to £4 million, which will be satisfied by an initial cash payment of £3 million and the issue of up to £1 million of new ordinary shares in the Company over the next 2 years, dependent on future performance. The cash component of the consideration has been funded through existing cash resources and a new loan facility of £2.5 million from HSBC.

Abilitec Holdings Limited is a supplier of IBM Tivoli Netcool managed services, consultancy, support and training. The company is based in Bedfordshire, UK, and has 35 employees. For the period to 31 March 2007, it reported annual sales of £3.76 million and earnings before interest, tax and amortisation of £704,000. The net assets of Abilitec Holdings Limited on completion are approximately £250,000.

The acquisition of Abilitec is earnings enhancing on a pro forma basis, based on the Abilitec results for the period to 31 March 2007.

This latest acquisition marks another major step in Innovise’s mission to grow its business through a buy and build strategy, spanning both its workforce management software division and its managed IT services division. The acquisition of Abilitec builds upon the acquisition of Data Technology Group Ltd in July 2007.

 

Mike Taylor, CEO of Innovise, said: “The managed IT services sector remains relatively fragmented, with a top stratum occupied by global giants and many much smaller providers below this top tier. We believe there is an opportunity within this valuable sector to build a highly profitable and integrated enterprise offering a comprehensive range of dependable IT services to medium and medium-large organisations.

“Prior to acquisition, both Abilitec and Data Technology were profitable and growing within their respective specialist areas – infrastructure services and applications services. We hope to accelerate the growth of both businesses, which provide a solid foundation for further selective expansion in these areas,” he added.

Abilitec will continue to be operated on an “as is” basis by the current team, including the principals, ensuring continuity and accountability for performance. At the same time, Innovise will seek to drive synergies throughout the enlarged group in order to increase recurring revenues, expand the customer base, and extend the range and value of its total offering.