Mamut looks to organic growth as buy-out falters

The failed buy-out of Mamut, the accountancy software company, has resulted in the business refocusing its efforts on organic growth, according to its chief executive.

Mamut, a Norway-based company which provides IT packages in accounting, internet and security, revealed to Accountancy Age that a prospective buyer was ‘unable to buy all the shares’.

Mamut offers packages such as Mamut One, which includes software for customer relationship management, payroll, accounts, stock and sales information, using both online technology (cloud computing) and traditional software.

Chief executive Eilert Hanoa said Mamut is now to invest in a long-term strategy. ‘The most interested party weren’t able to put a complete financial package together and couldn’t raise the money to buy all the shares at Mamut,’ he said.

Hanoa said acquisition discussions are suspended until further notice ­ but added that the interested party had not given up hope of buying Mamut shares, and was still looking for ways to fund the investment.

Mamut will work on new releases, and ‘building on strategic partnerships’ to increase distribution of its products. Last week, Mamut announced the release of 5.2 million new shares, representing 8.6% of the total, to fund expansion.

The IT business, which has 800 shareholders, claims the share issue will bring in 34.4m krone (£3.4m) for the company, with the shares currently valued at 6.75 krone on the Norwegian stock market.

Mamut, which splits its reporting into three sections ­ western Europe, Nordic and central Europe ­ has said western Europe provides to over 100,000 customers with the UK the biggest user in that division. Turnover in that division in Q1 2009 was 24.4m krone.