Basingstoke, UK-based information security product supplier Zergo Holdings Plc, is to seek a full listing on the London Stock Exchange. The company, which already trades on the Alternative Investment Market feels that in order for it to survive in the future, it needs to raise its profile and establish a strong acquisition position. It will seek to raise 15m pounds with the listing, and the money will be used to boost its marketing activity and to aid the company’s growth, according to Zergo chairman Professor Henry Beker. Zergo is busy trying to raise its international profile at the moment, following its 6m pound acquisition of Australian Public Key Infrastructure operation, Security Domain Pty Ltd in March (CI No 3,368). Since then, Zergo has put in place the foundations for a US arm of its business, Zergo Inc in San Mateo, California and entered into a joint venture, known as Cantego to provide security for WorldCom Inc. Prior to the Australian acquisition, around 65% to 70% of Zergo’s revenues were coming from the UK and the Netherlands. Now the Asia Pacific market generates 20% of the company’s overall sales, and Zergo is to concentrate on building on that figure as well as its business in the US. If its business in the US takes off according to plan, Beker believes a dual listing on Nasdaq is inevitable in the future. But the company decided to go with the London exchange at the moment, because it doesn’t generate enough business in the US and does not have a visible presence. According to Beker, analysts anticipate the security product market will grow at 100% per annum, for the next few years, and Zergo wants to be there to cash in on this. But in order to do this, Beker says Zergo must grow at the same speed. So it has a very intensive acquisition strategy in place, and is looking to expand in Europe, as well as across the rest of the world. The company believes it will be able to buy small companies that have been operating in the local European space and ease its way into additional markets. Zergo has 200 staff on the payroll at the moment, and wants to increase that figure to 300 by the end of the year. Zergo stock was up slightly on the back of the news, at 310.5 pence as we went to press.
