Xploite and Red Squared come clean on talks

IBM partner admits Xploite may make a recommended cash offer

VARs Xploite and Red Squared have addressed growing press speculation by revealing they are in talks.

A joint statement from the two resellers, which are both listed on the Alternative Investment Market, confirmed that Xploite may launch a bid for the IBM managed services partner.

“The Boards of Red Squared and Xploite have noted recent press speculation and confirm that Xploite is in discussions with Red Squared which may or may not lead to a recommended cash offer for the entire issued share capital of Red Squared,” the statement read.

Xploite chief executive Ian Smith declared plans to build a £100m storage and managed services reseller at the start of the year (CRN, 19 February). The firm has since snapped up rivals Posetiv and Anix.

Xploite and Red Squared, which posted a £64,000 pre-tax profit on revenues of £1.62m for the six months to 31 March, said further announcements will be made in due course “as and when necessary”.

See the next issue of CRN for full details of the story.