02-07-2008
BPE advises Maxima Holdings Plc on its acquisition of DXI Networks Ltd
BPE has advised Maxima Holdings plc (AIM:MXM), the integrated IT solutions and managed services provider, on its acquisition of DXI Networks Ltd. The deal, which took 3 months to complete, involved John Workman leading a team of legal specialists including Partner Tim Ward and Associate Guy Hopson.
Highlights:
• Acquisition of DXI for a total consideration of £9.11m, payable in cash on completion, which is expected to be in early July. The acquisition will be financed from a proposed increase of existing facilities with Barclays Bank plc.
• The acquisition fits well with Maxima’s existing infrastructure managed services business and will add breadth and scale, as well as creating cost synergies.
• The Board anticipates that the acquisition will be earnings enhancing in the company’s financial year ending 31 May 2009
• The acquisition is in line with Maxima’s consolidation strategy within the fragmented IT services sector.
DXI is a provider of converged Information and Communications Technology (ICT) services to business customers in the UK. DXI provides 24x7 fully managed IT infrastructure and communications solutions, including the design, deployment and management of complex converged networks, server hosting, internet, network security, VOIP (Voice Over Internet Protocol) and other telecommunications services. DXI is based in London where it has some 50 staff and its own data-centre. Included in this purchase was DXI’s Indian Subsidiary HCI (PVT) Limited, which will continue to trade and allow the Maxima group to make an entry into one of the world’s fastest growing economies. HCI (PVT) Limited has some 30 staff in Hyderabad, India, providing technical and administrative support. Its customers include Berkeley Group plc, Inchcape Retail Ltd, Transport for London and the FA Premier League.
In the financial year ended 31 March 2008 DXI generated revenues of £14.1m, EBITA of £1.25m and profit before tax of £0.8m. As at 31 March 2008 DXI had net assets of £1.3m. The gross consideration payable is £9.1m and at completion DXI is expected to have cash balances of at least £0.65m. DXI is a very similar business to Centric Networks Ltd, which has performed strongly since its acquisition by Maxima in July 2007. Integration with Maxima’s existing infrastructure managed service business is expected to yield significant cost savings.
Kelvin Harrison, Maxima’s Chief Executive said:
“I am delighted to welcome the DXI team into the Maxima Group. Their deep skills will reinforce our end-to-end ICT (Information and Communications Technology) managed service capabilities. In addition their long term customer relationships and high levels of recurring revenues will reinforce Maxima’s financial strength.”
Guy Hopson is an associate within BPE's 8-strong Corporate team. Contact him on 01242 248 291 or email guy.hopson@bpe.co.uk
Highlights:
• Acquisition of DXI for a total consideration of £9.11m, payable in cash on completion, which is expected to be in early July. The acquisition will be financed from a proposed increase of existing facilities with Barclays Bank plc.
• The acquisition fits well with Maxima’s existing infrastructure managed services business and will add breadth and scale, as well as creating cost synergies.
• The Board anticipates that the acquisition will be earnings enhancing in the company’s financial year ending 31 May 2009
• The acquisition is in line with Maxima’s consolidation strategy within the fragmented IT services sector.
DXI is a provider of converged Information and Communications Technology (ICT) services to business customers in the UK. DXI provides 24x7 fully managed IT infrastructure and communications solutions, including the design, deployment and management of complex converged networks, server hosting, internet, network security, VOIP (Voice Over Internet Protocol) and other telecommunications services. DXI is based in London where it has some 50 staff and its own data-centre. Included in this purchase was DXI’s Indian Subsidiary HCI (PVT) Limited, which will continue to trade and allow the Maxima group to make an entry into one of the world’s fastest growing economies. HCI (PVT) Limited has some 30 staff in Hyderabad, India, providing technical and administrative support. Its customers include Berkeley Group plc, Inchcape Retail Ltd, Transport for London and the FA Premier League.
In the financial year ended 31 March 2008 DXI generated revenues of £14.1m, EBITA of £1.25m and profit before tax of £0.8m. As at 31 March 2008 DXI had net assets of £1.3m. The gross consideration payable is £9.1m and at completion DXI is expected to have cash balances of at least £0.65m. DXI is a very similar business to Centric Networks Ltd, which has performed strongly since its acquisition by Maxima in July 2007. Integration with Maxima’s existing infrastructure managed service business is expected to yield significant cost savings.
Kelvin Harrison, Maxima’s Chief Executive said:
“I am delighted to welcome the DXI team into the Maxima Group. Their deep skills will reinforce our end-to-end ICT (Information and Communications Technology) managed service capabilities. In addition their long term customer relationships and high levels of recurring revenues will reinforce Maxima’s financial strength.”
Guy Hopson is an associate within BPE's 8-strong Corporate team. Contact him on 01242 248 291 or email guy.hopson@bpe.co.uk
