Corporate Defence Solutions is set to hit the acquisition trail after lining
up investment from South Africa-based IT firm
SecureData announced its intentions to make an offer for the Juniper and Check Point reseller through a holding company, SDH UK, which it has formed with management from MIS .
The deal, which values MIS at up to £14.2m, is to close in mid-March.
Etienne Greeff, one of three MIS directors involved in the buy-out, said MIS was forced to hunt for fresh investment opportunities after its fourth director, Sas Dutoit, stepped down due to ill health.
“It was important to find a long-term investor that would not cause too much disruption to the business,” Greeff explained. “We decided on SecureData because it is a distributor and not a competitor.
“The only difference is we will have more capital behind us so we can be more aggressive,” he said.
Greeff said MIS, which boasts a turnover of about £13m, would make an acquisition to bolster its presence in the City within the next year.
David Hobson, managing director at rival VAR GSS, said he was surprised by the £14.2m price tag.
But he added: “Given MIS’s South African links this deal does not come as a shock.”
Dave Ellis, security director at specialist distributor Computerlinks, said MIS is one of the last large UK security resellers not owned by an international group.
“I can understand the valuation. A lot of MIS’s business is focused on managed services and repeat annuity, which makes it attractive to a buyer,” he added.
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