InTechnology buy Evoxus
InTechnology, the IT services company, has acquired Evoxus Ltd in a cash deal worth £6.6m overall.
Evoxus has been bought for £3m although InTechnology will also repay shareholder debt of £3.6m, as well as taking on working capital debt of £1.5m.
The deal has been entirely financed from the InTechology’s own finances; the company is in a good position to buy following the sale of its distribution arm last year for £41m.
Evoxus, which design, build and operate IT products and services, originally began life as a part of British Telecom in 1999, and were subsequently bought out by its management in 2003.
Since then the company has fallen upon harder times and audited results showed losses before taxation of over £2m as of March 31, 2006.
However, Evoxus is now back into the black and unaudited results show profits of approximately £200,000 as of December 31, 2006.
The company has a number of big clients including The Woolwich, Barclays Bank, MFI, Lex Vehicle Leasing, Kelly Services and Midlands Co-operative as well as many smaller ones.
InTechnology believes that the Evoxus customer base will provide considerable opportunities for cross-selling its own existing offering.
The acquisition also complements InTechnology’s recent investment in Mobile Tornado Group plc, the company say.
Peter Wilkinson, chief executive, said: “Today’s acquisition completes our VoIP offering, adding strong telecoms skills and delivery to our strong data and network capabilities.
“Our expanded Managed Voice business is an excellent platform on which we can market the managed services opportunity arising from our recent investment in Mobile Tornado Group plc.”
© Crimson Business Ltd. 2007