Software distributor, Manaccom Corporation (ASX:MNL), has reached an agreement to buy out founder, Ian Mackay, for around $1 million in company funds and a further $1.5m in investor funds.
The move will see the Mackay family lose all major influence on the company it founded over 20 years ago.
Manaccom CEO, Mike Veverka, said Mackay’s plans for retirement probably played a role in his decision to sell.
“[Mackay] wanted to sell his shares. After he retired from the board in November last year he sold a few on the market so we just assisted in selling his entire stake,” he said.
“The company could afford the $1m comfortably because we’ve got about $8-9m in cash.”
Veverka said the agreement was made in order to reduce the level of downward pressure a sale of this size would have on the open market.
The first tranche of 4,840,000 shares (11.3 per cent of the company) at $0.30 each will be bought by institutional investors and Veverka while the second tranche of 3,578,057 shares (8.3 per cent of the company) will be bought using company funds.
Veverka, who will own 21.5 per cent of the company’s shares after the buy back, said the company was doing well and would return good figures in its next report.
“The division [Ian Mackay] was managing did go into a few problems so we did have to restructure it but it’s in a much better shape now,” he said. “I wouldn’t say we’re completely out of the woods yet but it’s certainly on the mend and the overall business is doing great.”
When asked if the removal of all Mackay family influence from the running of Manaccom was a positive move, Veverka said time would tell. It had been smooth sailing since Mackay retired in November 2009.
“It’s been fairly positive over the last six months and I think it’ll continue to be a positive thing,” he said. “We’re certainly a lot more buoyant than we were six months ago.”
“It started off a bit rough but we’ve renegotiated the deal with them and things are much better than they were,” Veverka said. “The next two years with them are looking bright… at the moment we’re on track for our forecast for the current year and the year ahead is looking a lot more rosy than last year.
“We’ve normally been in software distribution, but now we’re looking into computer hardware,” he said. “It’d mainly be targeted at consumers, but we do have some work in the corporate space.
“Lottery is continuing to perform really well. We’ve got the $50m jackpot next Tuesday, which is pushing sales along so we’ll have a bit finish to the financial year.”