Formjet shelves distributor acquisition talks

Panda Software owner abandons proposed purchase of unnamed distributor following due diligence

Software vendor Formjet has shelved its proposed acquisition of an unnamed UK distributor, but says it is now reviewing a number of other targets.

The firm, which owns the Panda Software brand in the UK and develops software for mass retailers such as Tesco, announced earlier this month that it had agreed an option to buy a “specialist distribution” company for up to £1.2m.

But after concluding due diligence, Formjet has decided not to exercise the option to acquire the target.

Although staying tight-lipped on its identity, Formet revealed the distributor in question is based in the east of England, has a turnover of £12.6m and boasts a “significant customer base of IT resellers and independent retailers”.

Nevertheless Formjet is still keen to splash its cash after recently raising £900,000 through a share issue. The Alternative Investment Market-listed firm revealed in a stock exchange announcement that it is reviewing a number of other acquisition targets and that a further announcement will be made in due course.