Netstore denies rumour that suitors have walked

Netstore has branded channel rumours that it is struggling to find a buyer as “nonsense”.

The managed service and security VAR announced it was inviting bids from external parties and management in February, after receiving a number of formal approaches. It expected to make a recommendation to shareholders in mid-March.

Ray Ottey, partnerships manager at Netstore, waved off speculation that all serious suitors had walked away.

“The story of us not being able to find a buyer is nonsense,” he said. “No-one else outside of Netstore could possibly be aware of this, but it wouldn't surprise me if there were many firms interested and investigating the possibility of making an offer."

Netstore recently announced that its new 550sqm datacentre will open on 21 July – more than doubling its data storage capacity. The VAR also operates consultancy and security practices.

“Our three areas of expertise - hosting, security and expert services - are three growth areas in IT, so I can understand why third parties would be interested in us," said Ottey.

Netstore’s financial year ends in June, and Ottey claimed it was unlikely any formal bids would be tabled until it had published its results. "I would be surprised to see someone put a bid in as I would assume they would want to see the first full-year results of the new management team," he said.

One insider, who wished to remain anonymous, said: “I can understand buyers wanting to wait as they need to know what they are getting. Netstore’s numbers may not be what they were six months ago.”

Ian Kilpatrick, chairman of distributor Wick Hill, said: “Netstore is a high-profile business with a strong security practice, which would make it attractive to potential buyers.”