LONDON (Alliance News) - MXC Capital Ltd Monday said it has acquired managed ICT services provider Calyx Managed Services Ltd from Better Capital PPC Ltd for GBP9 million.
MXC said it acquired the Calyx business using its existing cash resources. In 2014, Calyx generated a gross margin of GBP10.4 million and earnings before interest, taxes, depreciation and amortisation of GBP400,000. MXC said it believes the business is capable of generating cash from the point of acquisition.
"Calyx is a well-established business delivering a broad portfolio of ICT solutions to an impressive roster of customers. We know the Calyx business well and it operates in markets we are already active in. We believe there is an opportunity to create value for our shareholders from this investment," said Chief Executive Marc Young in a statement.
MXC said the Calyx business will sit alongside its existing investment portfolio of technology businesses, which includes Eagle Eye Solutions Group PLC and Castleton Technology PLC.
In a separate statement, Better Capital said it decided to sell the Calyx Managed Services business in hope of using the further capital in seeking acquisitions, but said that if the CMS business did not receive a satisfactory offer, then it would have restructured the business.
Better Capital said its investment business Fairline Boats Ltd faced difficult market conditions and a challenging 2014. It said that a further commitment of GBP4.0 million has been approved to Fairline to fund cash flow needs, ongoing restructuring costs and development of new products.
"Having considered the level of cash available within Fund I with the GP [General Partner], the directors of the company have concluded that it is not in a position to make a further distribution to shareholders at this time but will continue to monitor the position closely," Better Capital said in its statement.
MXC Capital shares were up 8.2% at 2.65 pence in early trading Monday, while Better Capital shares were untraded. The stock was last traded at 91.56 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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