Cantono is selling its managed IT services businesses to Xploite for £3m.
Cantono had planned to grow these services businesses along with the new data centre operations but it has decided to focus on the latter.
The managed services businesses have 45 customers and last year made a “significant loss”. Xploite says that the acquisition should be earnings enhancing after eight weeks of integration into the company’s subsidiary, Anix.
Cash rich Xploite will pay £1.9m upfront and £1.1m three months after the deal is completed. Cantono will be left with offices in West Drayton, where the lease expires in May 2009, and Cannon Street, where the lease expires in 2013. Cantono needs to gain shareholder approval for the disposal at a general meeting on 15 December.
Cantono has already gained shareholder approval to issue shares to raise more cash. The directors want to be involved in the placing but can’t when the company is in its close period. The results for the year to May 2008 should be published by the end of November.
At 2.5p a share, Cantono is valued at £730,000. The shares were trading at 14p each when the potential fund raising was first mentioned. It will be highly dilutive at the current share price although it will not need to be as large a fund raising now that money is coming in from the disposal.
Xploite shares rose 1p to 33p each, which values the company at £13m.
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