Microgen has taken an 11.26% stake in SciSys.
This is interesting because financial and billing software provider Microgen has made a point of reducing its dependence on IT consultancy business. The sales of this division declined by more than one-fifth in 2007. It might still make sense to bring the two companies together, though. This could provide opportunities to cut costs. The broadcast software and space operations would take Microgen into new areas.
Microgen swung from loss to profit in 2007. It has been keen to make acquisitions but hasn’t made much progress in recent years. Last summer Microgen bid £22.1m for Trace, which supplies financial, insurance and property software, but it lost out to a lower offer. In 2005, it failed in a bid battle for financial services software supplier AttentiV.
SciSys is valued at £10m at 35.25p a share, while Microgen is worth £49.4m at 47.5p a share.
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