Secure video conferencing provider, ServicePoint Limited, is set to acquire Canberra-based Allied Technologies Group in a proposed merger scheduled for April.
The merger is subject to shareholder approval, however, CEO of ServicePoint, Andrew Berriman, said the transaction was a fait accomplice as major shareholders holding 68 per cent of the company’s shares had already agreed to the merger.
ASX-listed Allied Technologies and ServicePoint are both contracted to build and maintain highly-sensitive, secure, voice, video and data networks for the Australian Federal Department of Defence.
ServicePoint has had an ongoing relationship with the Defence Department since 2000 when it won a $1.2 million deal to supply secure videoconferencing communications. In 2001, ServicePoint secured a $2.25 million Defence contract for three years with two one-year extensions.
Allied Technologies has also been supplying videoconferencing solutions to Defence as a sub-contractor under Telstra’s services contract.
As part of the acquisition, ServicePoint will acquire Allied’s intellectual property infrastructure, customer base and staff, and the merged company will carry the Allied Technologies mantle.
ServicePoint will acquire Allied as part of a share transaction.
“We have 30 million shares in issue and we’re issuing 70 million new shares to Allied shareholders in consideration of us acquiring 100 per cent shares in Allied,” CEO of ServicePoint, Andrew Berriman, said.
“It was the heightened world security concerns – plus opportunities presented by the Federal Government’s decision to outsource $3 billion whole-of-Government technology purchasing over the next two years – that prompted ServicePoint’s decision to merge and expand," he said.
“It [the acquisition] provides us with a more complete solution to take to government and commercial markets. It also gives us more critical mass. As a combined entity, we’re now on the horizon.”