Leading Solution will continue to work towards establishing a national presence following the sensational collapse of its proposed merger with ComputerCorp. The deal would have created one of the largest IT integrators in the Australian market.
Both parties have refused to discuss why the merger will not go ahead but one theory doing the rounds is that ComputerCorp wanted to insert last-minute clauses that Leading Solutions was not prepared to accept. Some industry whispers also suggested the BCA IT side of Leading Solutions is on credit hold with major suppliers. Leading acquired BCA in November 2006. Those credit claims have been categorically denied by Leading's managing director, Frank Colli.
"Most of our major suppliers only have one account with us and we are not on hold with any of them. That's totally wrong," he said. "Businesses go through different things and you do go on hold from time to time but you have to question why that is. We have been on hold in the past when we've hit credit limits but that's because the business is growing and we are not on hold today."
The termination of the proposed deal between Leading and ASX-listed ComputerCorp was announced to the stock exchange on Thursday afternoon. ComputerCorp eastern region director, Tony Heywood, would not be drawn on the reasons behind the announcement.
"ComputerCorp has traded profitably in all states and we are confident we can operate outside of this merger," he said.