Maxima takes itself off the market

VAR claims conditions are not right for a sale, but says strategic review is ongoing

VAR Maxima has taken down the for sale sign after concluding that the market is “not right” for a sale.

Back in August, Channelweb reported that the firm had struck up talks with a mystery suitor as it posted annual pre-tax losses of £9m on sales that fell 10 per cent to £45.7m. This was after the Microsoft, SAP, Citrix and IBM partner had launched a strategic review of the business, which it said could result in the sale of all or part of the business.

In a statement on its website, the firm said: “On 14 April 2011, the Board announced a strategic review, which could result in new strategic relationships, options to support the Company’s growth plans, or a sale of all or part of the business.

“Following discussions with various potential offers, the Board has concluded that a sale of the entire business in current market conditions would not be in the best interests of shareholders.

“There are no discussions ongoing with any potential offers. As a result, the company is no longer in an offer period in accordance with the rules of the City Code on Takeovers and Mergers.”

Georgina O’Toole, director at analyst TechMarketView, said firms like Maxima are feeling increasing pressure. “Maxima, like its competitors is under pressure to be a specialist rather than a generalist in an ‘ever commoditising’ business applications space. It appears that Maxima has yet to rule out the sale of parts of its business so that it can concentrate efforts on its growth engines,” she said in a statement.