AIM-listed buy and build strategist Accumuli has forked out £5.48m for IT security firm Boxing Orange Ltd and its subsidiary Webscreen.
The ultimate aim for management is to roll up a managed security services specialist and Boxing Orange represents its third acquisition to date, after taking over Tuscany Networks and Fujin Technology late last year.
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Under the terms of deal, Accumuli will cough up £2.73m in cash and issue more than 31 million shares at 8.75 pence each, but could rise another £2.1m in cash dependent on performance.
"Boxing Orange provides the company with an established, profitable, managed service capability with significant opportunities to cross sell complimentary services across [our] customer base," said Accumuli chairman Graham Norfolk.
West Yorkshire-based Boxing Orange resells ArcSight SIEM, a security incident and event management product, punts managed services through its 24/7 security operations centre and Distributed Denial of Service via sub Webscreen.
In the year to 31 March 2010, Boxing Orange made an EBITDA of £714,000 on revenues of £3.58m, while in the twelve months to 31 December, Websreen made an EBITDA of £232,000 on sales of £606,000. The firm employs 27 staff.
Conclusion of the acquisition is conditional on Accumuli shareholders passing it at the General Meeting scheduled for 15 April.