ASX-listed Etick will be the new owner of IT procurement and services integrator, ComputerCorp, under a deal worth about $7.58 million. The two companies officially entered into a heads of agreement for a backdoor acquisition on March 31.
According to an ASX statement, the company will pay $4.9 million in cash to ComputerCorp's owners, along with various share options. As a condition of the sale, Etick will also place 24 million ordinary shares in Etick at $0.25 per share to raise $6 million in capital.
The deal is scheduled to be completed in June. Etick (ETK) will be rebadged as ComputerCorp.
As reported in ARN last month, ComputerCorp co-owner and managing director, Hugh Smith, sold the company to a group of investors. He has since left the position. ComputerCorp's two other co-owners, Rod Durston and Mike Rickers, are also understood to have also stepped down.
Etick was originally established as an ecommerce certification authority by the Customer Service Institute of Australia. The new management team consists of non-executive chairman and former Deloitte Touche Tohmatsu CEO, Domenic Martino, and two non-executive directors: Perth solicitor, Kevin Dundo, and Etick founder, Paul Page.
ComputerCorp CFO, Murray Mansell, will continue in his post, along with national services manager, Geoff Cox. Others staying on include Dee Broadmore (strategic marketing manager), Peter Cappendell (WA state manager), Craig Singleton (company accountant) and Greg Carter (operations manager).
Mansell said the company would continue to pursue an aggressive acquisition strategy.
Over the past 12 months, it had made several purchases, including Tasmanian-based Xite and in CES Computers in Canberra. Capital raising was already well underway, he said.
"We will look at the lower end of the market. It won't be hundreds of companies, but a string of acquisitions," Mansell said.
According to its financial statement, ComputerCorp sales revenue for the 2005 financial year reached $130 million. EBITDA over the same period was $1.9 million.