LanBase holds out for most suitable bidder

LanBase founder and managing director Keith Berry has turned down a personal fortune after rejecting offers from potential suitors and selling the Thatcham reseller to Workplace Technologies.

The deal, which is valued at a maximum consideration of #19.6 million, means Berry will accrue a #6.5 million windfall but only after he favoured network integrator Workplace Technologies over six other companies that offered the managing director a greater personal profit as part of the takeover.

A representative for Workplace Technologies, the former UK customer service division of ICL, said the deal would allow the company to extend its network services into LanBase's largest customer base in the financial services sector based in London and the South East.

The purchase included 51 per cent of LanBase Espana, which generated a quarter of LanBase's business last year.

Berry said the reseller had originally looked at floating on the stock exchange but it had floundered on his technical background: 'It's down to style and I didn't think it suited me. I'm a technical guy and dealing with analysts from the City is not my sort of bag.'

He added the business had been sought after because of its potential and current growth. It is recruiting 300 staff and is expected to grow by another 30 per cent next year.

Last year, LanBase turned over #19.9 million, an increase of #4 million on the previous year's figures. The deal will cost Workplace Technologies #8.8 million in cash, #1 million in loan notes and the issue of consideration shares valued at #6.5 each.

Berry will take a seat on the board while the sale to Workplace Technologies, which is valued at #44 million, patches its gap in providing services.