Xploite leaps back into M&A game

Ian Smith's buy-and-build reseller grabs managed services business of London-listed firm Cantono

Buy-and-build VAR Xploitehas kicked off the next phase of its expansion by acquiring Cantono’s managed services business for £3m.

Xploite, which is headed by industry veteran Ian Smith, made four acquisitions in 2007 including IBM reseller Anix, but has since taken a year-long sabbatical from the M&A game.

But the reseller this morning leapt back into the fray by announcing it has agreed to buy London-listed Cantono’s four managed services business, including Blue River Systems Limited. The transaction, which hinges on the approval of Cantono’s shareholders, is due to complete no later than 15 December.

The four trading units have 70 employees and some 45 managed services customers who will be integrated into Anix. For the year to 31 May 2007, the businesses made an operating loss of £6.95m on sales of £4.47m.

Xploite chief executive Ian Smith said: “The acquisition of these four units continues to build our managed services business, strengthens our position in the UK mid-market managed services sector and provides considerable opportunities for cross selling.

“The acquisition is expected to be immediately profitable, and will become earnings enhancing after integration which is anticipated to take eight weeks.”