The move will provide Action with access to Biomni’s range of blue chip customers, which are increasingly looking to e-procurement methods to reduce the cost of purchasing.
Action chairman Henry Lewis told MicroScope the deal was all part of an ongoing assault on its core corporate market as it aimed to reverse the current negative market perceptions of the company.
“We are looking at our share price and working on our market valuation. I’m more confident now than I have been for a while, but it’s a tough market out there,” he said.
Lewis maintained the company was still a “commodity player” and market speculation over its future and a possible sale (see MicroScope, 13 March) were unfounded.
“We’ve kept our head down and got on with things. Rumours always fill the void,” he said.
Action’s current share price — 28.5p, as opposed to a 52-week high of £1.75 which was largely unaffected by news of its Biomni deal — was reflected across the industry, according to Lewis.
“Computacenter, Compel —everyone has been affected,” he added.
Action’s business development director, Ian Cashmore, said the tie-up would give it an extra route to market and “deeper penetration” into the spend of some of Biomni’s corporate users.
Biomni’s CEO, Angus Gregory, said some of its 2,000 buying organisation customers already had a trading relationship with Action and hoped the tie-up would make the reseller’s link with customers easier.
“It will enable us to facilitate the relationships electronically, streamlining the purchasing and sales processes to reduce costs while making the latest information easily available,” he added.
This was first published in March 2001