Fujin Technology sold to Accumuli for £2m

Buy and build outfit Accumuli has netted its second acquisition in a month after agreeing to pay £2m in cash for security integrator Fujin Technology. The investment vehicle reversed into Tuscany Networks in November and revealed plans to raise funds through a share placement to fuel further p

Buy and build outfit Accumuli has netted its second acquisition in a month after agreeing to pay £2m in cash for security integrator Fujin Technology.

The investment vehicle reversed into Tuscany Networks in November and revealed plans to raise funds through a share placement to fuel further purchases, but the deal with Fujin materialised earlier than planned.

Founded in 2003, Fujin focuses almost exclusively on providing content and network security systems from a small number of vendors including Blue Coat to European mobile and broadband service providers.

"We are delighted to have completed the second acquisition in our stated strategy of building a Managed IT Security Services business," said Accumuli non-exec chairman Graham Norfolk.

All five staff at Berkshire-based Fujin will transfer to the new owners with technical director Andy Aplin assuming overall technical responsibility for the enlarged group but managing director Will Palmer working only on a consultancy basis.

The strategy is to expand the technology sales of Fujin Group and raise margins by "in-housing" more consultancy and support work which is made achievable by Accumuli's wider resoruces, the firms siad.

Under the T&Cs, Accumuli will pay Fujin £1.9m on the completion of the deal and the remainder by the end of next month. In audited accounts for 31 October 2010, Fujin posted sales of £3m and group profits of £430,000.

Accumuli was born out of Manchester-based Netservices following the sale of its trading operations, assets and subsidiary WAN Services to GCI Telecom for £3.4m in 2009, months after it received investment from serial entrepreneur Ian Smith.

Now an executive director, Smith advised Accumuli on the acquisition of Fujin Technology via his ICT M&A consultancy MXC Capital and is entitled to 2% of the transaction fee.

He is also chairman at Redstone, which recently acquired Fujin Systems - a subsidiary of Fujin Technology - that resells Brocade and Arista in the classic data centre space.

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