Maintel has written a cheque for £5.25 million to buy Intrinsic in a deal which appears surprisingly good.
Maintel said buying Intrinsic will create a £160 million company and it appears to have been a bargain, even if the two companies will find integration a little difficult.
In a filing posted to the AIM stock exchange, Maintel said that for the 12 months ending May 2017 Intrinsic reported an adjusted loss before tax of around £550,000.
In its most recent filing on Companies House, Intrinsic reported revenue of £48 million for the extended 18 month period ending 31 May 2016, but Buxton said that the business is not currently trading at this level.
Intrinsic’s Merseyside office is set to remain open for the foreseeable future and its London staff will be moved into Maintel’s nearby Blackfriars office. The Intrinsic name, meanwhile, is set to be retired at the beginning of Maintel’s financial year on 1 January 2018.
Intrinsic has had a pretty unhappy life of late. It has undergone as series of management changes since it was the subject of a management buyout in 2011.
From a technology point of view, the main draw for Maintel was Intrinsic’s Cisco Gold status which it has not had in its portfolio.
