At the conclusion of a shareholder meeting on March 14, it will be known whether white-box assembler Optima has pulled off a reverse acquisition of ASX-listed Iocom to form a new listed IT company.
After resolving some minor issues with the Australian Securities and Investment Commission (ASIC), Optima has now laid out its final plans to merge with Iocom to form a new entity, Optima ICM Limited (ASX: OPI).
Optima's managing director, Cornel Ung, wants the merger to create a company with revenues of over $100 million a year. Should the merger be successful, Ung and fellow Optima executive Edmond Chan will become executive directors of the company, with Iocom's Scott Brown staying on as non-executive chairman.
At present, the two companies focus on very different markets. Optima is one of Australia's foremost white-box computer assemblers, while Iocom is a relatively smaller business, focused on outsourcing services to the SME market. Neither of these focuses will change under the merger, Ung said, but both will use each other's strengths to their advantage. Optima will attempt to sell its hardware products into Iocom's SME customer base, while many of Iocom's services are relevant on a larger scale to Optima's customers in the education vertical.
Ung also expects some significant savings to be achieved by integrating the logistics operations of both companies. "At the moment, we both have offices in New South Wales, Victoria and Queensland," he said. "These offices will be merged and should earn us some good savings."
The other reason for listing on the ASX, Ung said, is to finance Optima's expansion into new territories. At present, 85 per cent of the company's revenues come from New South Wales, but Ung now expects the Victorian and Queensland offices to expand considerably and he also has Western Australia in mind as a new market altogether.
"I see no reason why we can't take it even further and begin exporting our products," he added.