M&A Activity in the ICT Sector - February 2010

It’s finally here – we are officially out of recession! So, are things looking up and have we turned the corner? Well the UK ICT sector is still the largest in Europe (with over one million people employed and contributing an enormous 10% of UK GDP) yet according to UK Trade & Investment it is still expected to grow to over £29 billion by 2012.  Furthermore, PricewaterhouseCoopers (PwC) reports that at least €15 billion of announced deals are set to complete in the first quarter of 2010. Within the UK, the sector bottom line profitability has been managed effectively for many in 2009, yet achieving high growth has proved more challenging, therefore acquisitions are likely to be an integral part of most corporate growth stories in the foreseeable future.

PwC have also highlighted five ‘hot spots’ for 2010 – Financial Technology, Software-as-a-Service (SaaS), Convergence, Healthcare Software and IT Services (SITS) and Security Solutions.

We have seen a definite increase in activity, with greater competition for sale mandates. This perhaps reflects the growing realisation that cash in the bank could be put to much better work.

M&A Activity in the ICT Sector - January 2010

Inevitably as we start the year (and decade) we wonder what is in stall for the sector during the forthcoming year. (Not sure many sane people would try to predict where we will be in this sector in a decade – and we are certainly not going to try!)

Prism Sell Security Firm

Successful network and end point security specialists Metadigm Limited has been sold to a management buy in team.  The sale, facilitated by Prism, allows the Managing Director to pursue other ventues.

The new owners, Nick Scot and Jason Simper, formed Blend IT Group as a vehicle to acquire Metadigm, they bring with them a wealth of experience and business expertise and secure the future of the company, where it is business as usual. 

Metadigm was established in 1989 by Alan McRae, offering technical consulting during initial security solution specification and throughout installation, in addition to providing on-going support and management for remote users across the globe. Their success grew over the years having set up valued partnerships with many high profile vendors such as Check Point, Fortinet, Riverbed and Aladdin.

As the success of Metadigm continued to grow, Alan made the decision to sell and in February 2009, he enlisted Prism Corporate Broking to assess his options. By the end of October 2009, the sale was complete.  

For full details please download our case study.

Prism Appoint New Chairman

We have appointed a new and highly experienced non-executive Chairman to our team.

Robert Ferguson, a Chartered Accountant who until recently worked as the Senior Partner for KPMG East Anglia, joins our team having taken the decision to retire from the global professional services company.

Robert adds, “Prism Corporate Broking has proved that they are a highly professional and successful company and I look forward to working with them to enhance their services to clients, and grow the business.”

ICT Seminar Success – Maximise the Value of Your Business

In November 2009 we held our London seminar entitled ‘Maximise the Value of your ICT Business‘ at the Honourable Artillery Company’s headquarters in the City.

For owners/managers of ICT businesses and associated intermediaries, the aim of the seminar was to advise delegates on how to maximise the value of their business, whether they were planning to sell or not.  It also included an overview of the 6 essential elements to make businesses more valuable and attractive to others.  Plus, a former CEO of a successful ICT business gave an honest insight into the lessons he learnt when selling his business.

The morning proved a great success and we would like to thank all who attended. Below is a brief summary of the feedback we received:

100% of delegates rated the seminar good or excellent.

Comments:

“Very useful, good mix of knowledge and experience.”

“Congratulations for the very well structured presentation.”

“Thanks, very good!”

If you were unable to make this event or would like to be kept informed of similar future events, please let us know by emailing events@prismcorporatebroking.com.

M&A Activity in the ICT Sector - November 09

We are still seeing particular interest in certain areas of the market – security being one of them.  Perhaps the most notable transaction was TA Associates acquisition of 25% of AVG Technologies for $200m.  The past month also saw ScanSafe go to Cisco Systems for $183m.

Prism has announced the sale of web based company Battery Force to Supreme Imports

Prism has facilitated the sale of one of the UK’s leading online battery retailers to one of the largest trade distributors of branded batteries.

Husband and wife team Christian and Barbara Karg established Battery Force and within just six years turned it into a highly successful business. The company sells branded batteries throughout the UK via an extremely sophisticated e-commerce system, the brainchild of Christian himself.  With great experience within business applied information technology, Christian created the technological platform for which to run Battery Force online, providing a logical and seamless retail system for both the customers and staff. 

Christian decided he wanted to sell Battery Force to focus on other technology driven projects and with the detailed guidance from Prism, he achieved his objective.

For full details please download our case study.

M&A Activity in the ICT Sector – September 09

Now we look back, we see that there were a number of notable transactions. Firstly, eBay offloading 65% of Skype to an investor group led by Silver Lake, thereby valuing the business at $2.75bn. eBay acquired Skype in 2005 for over $3bn but evidently found that the synergies with its core business were not sufficient. Staying with telecoms, September then saw Avaya picking up Nortel Networks‘ enterprise units for $915m. It had made a ‘stalking horse’ offer back in July for $475m.

Buying a Distressed Business

As briefly mentioned in last month’s newsletter, this month we look at the opportunities that arise from buying a distressed business. Chris McKay, a Chartered Accountant, licensed insolvency practitioner and an Associate at McTear Williams & Wood, highlights the elements to consider before taking the plunge…

Prism Facilitate Sale of RapidHost Ltd to Innovise plc

Prism has announced the sale of RapidHost Ltd, an internet hosting, backup and email services company to the fast growing software solutions and IT services provider, Innovise plc (AIM: INNO).

For full details please download:  Case Study – Sale of RapidHost – 110kb

Prism publishes  market research report into M&A in the ICT sector

Prism recently commissioned a research project into M&A in the ICT sector, specifically concerning medium sized companies (£0.5m to £10m turnover range).

Sale of SysAdmins

Prism Corporate Broking has advised Systems Administrators Limited in the sale of 100% of the share capital to Clearsprings (Management) Limited, a leading provider of accommodation and support services in the UK.