The management of Wimbourne-based reseller Abtech Computer Services UK have staged a management buyout (MBO). The VAR's management bought the shareholding from US parent Abtech Systems.
"Abtech was set up in the UK in 1996 as an outlet for refurbished Hewlett-Packard [HP] products," said Nigel Wright, sales director at Abtech UK.
"We became an HP reseller, and we've added Sun and Red Hat accreditations. We're different from the other company now. We sell very little refurbished HP products."
Initially, the business was put up for sale to outside parties. However, there was not much feedback from potential buyers, said Wright.
The buyout has made four existing members of staff the shareholders in the company, including Wright. Keith Collins will manage consultancy, Chris Turner will head support, and Cathy Chick will look after operations at the firm.
"We were in a good position to buy, and the price was right," Wright said. "Each of the four shareholders put in 25 per cent for the buyout, which we financed ourselves.
"It means we have no large debt, and no venture capital investment. The company is profitable, and we have cash in the bank.
"We are looking to the maintenance and support business to keep the money coming through, and Red Hat, of which we are an advanced partner, to get new business. We will maintain existing customers with HP's 9000 server range, as well as helping customers that want to buy Sun."
Keith Humphreys, managing consultant at analyst EuroLAN, said that the UK was seeing more acquisition activity, while MBOs remain relatively few and far between.
"It sounds like one of those episodes in which a business forms a life of its own and breaks away," said Humphreys.
Security firm set to become part of acquisitive Shearwater Group
Distributor merges three northern sites into one new hub in Warrington
Activist investor puts forward five director candidates as turmoil continues at security giant
Nima Green asks what is driving public cloud uptake in Germany