The proposed merger between ASX-listed ComputerCorp and Leading Solutions has collapsed at the eleventh hour. The deal would have created one of the largest IT integrators in the Australian market.
"Further to the company's announcement on 7 December 2007, the company has today terminated its agreement with Colli Holdings Pty Ltd. As a consequence, the company will not be proceeding to convene a shareholders meeting in relation to the acquisition as previously announced," ComputerCorp chairman, Domenic Martino, said in a statement to the ASX.
An agreement between the two companies had been finalised in December. As previously reported in ARN, ComputerCorp was to pay $500,000 in cash and issue more than 167 million shares valued at $0.17. Additional shares were to be offered at a later date based on company performance.
The merged entity was due to trade as Leading Solutions with the Melbourne-based integrator's managing director, Frank Colli, at the helm.
Speaking after the collapse of the deal, ComputerCorp's eastern region director, Tony Heywood, said: "ComputerCorp has traded profitably in all states and we are confident we can operate outside of this merger."
More to follow.