Avisen and Xploite combine for M&A push

The two boards have agreed £11.38m deal

Two of the UK’s most acquisitive VARs, Avisen and Xploite, are joining forces to boost their buy-and-build prowess.

The Alternative Investment Market (AIM)-listed duo announced this morning that their boards had agreed a deal valuing cash-rich Xploite’s entire issued share capital at £11.38m.

Xploite’s main remaining operating business is storage analytics outfit Storage Fusion. The firm – which is led by serial entrepreneur Ian Smith – recently disposed of Anix, the IBM resell powerhouse it built up through a series of acquisitions.

Avisen bills itself as a performance management consultancy and has recently snapped up a number of IBM Cognos resellers, including Inca.

Xploite chief executive Smith and financial director Robert Arrowsmith will be executive chairman and chief financial officer of the enlarged group, respectively. Avisen chief executive Marcus Hanke will be chief executive of the group.

Smith said the transaction would provide the group with the “perfect platform” to execute a buy-and-build strategy.

“We have a very strong and committed management team and we are currently looking at a number of opportunities which we believe will further enhance shareholder value,” he said.

Hanke claimed that Xploite is a “strategic fit” for Avisen in the performance management market but also stressed that Xploite’s directors have a proven track record that will help it to identify future acquisition opportunities.

“Avisen intends to utilise some of the cash resources in Xploite to significantly extend and enhance Inca's customer support offerings to its IBM client base,” he added.

The terms of the agreement will see Avisen acquire Xploite’s share capital in consideration for the issue for 3.6 New Avisen Shares for each share scheme. The proposal needs shareholder approval but the expectation is that Xploite’s shares will be suspended from AIM on 13 April 2010.