German acquisition boosts Ilion?s impact

Acquisition of Unix specialist Microware gives networking distributor the extra clout it is after in the German market

Networking distributor Ilion has doubled its operation in Germany, spending #4.1 million to acquire Unix specialist Microware.

Although Ilion, formerly known as Persona, had an operation in Germany through its Toplog subsidiary ? which it acquired last year ? the distributor wanted a more significant player in the German market.

In 1996, Ilion?s turnover in Germany was about #4.1 million, less than three per cent of the group?s turnover.

Microware is a distributor of computer networking and Unix hardware and software. Based in Germany and Austria, it concentrates on supplying SCO, Informix and IBM products.

Lynette Summerfield, sales director at Ilion UK, said: ?We can now begin talking to vendors like Bay and 3Com. There are more opportunities for us to expand our product offerings in Germany.?

But it was unlikely that any lines from the German operation, such as Informix, would be moved over to the UK, because the agreement is made on a country by country basis.

Microware achieved a pre-tax profit of #112,000 and a turnover of #14.2 million in the year ended 31 December 1996. The net assets ? part of the acquisition ? are #400,000.

The purchase price will be paid in parts: #400,000 will be paid in cash and #1 million in respect of goodwill on completion. Microware has agreed to apply for 254,000 Ilion shares at 389.5p per share. The remaining balance of the consideration is payable at the end of March 1988. On completion of the acquisition, Microware?s operation will be combined with Ilion?s existing German operation. Microware will assume Ilion?s name.

Meanwhile Ilion UK has gained the rights to distribute IBM?s networking products, covering its switches, hubs and routers. The distributor will set up a team of four to handle the products.