Hardware and software distributor, Magnafield has been acquired by ASX-listed Web developer MultiEmedia.com for $3.5 million.
Magnafield, which imports and distributes PCs, components and software to resellers, turned over $30 million in the year to June 2000 and will be purchased through an issue of $2.5 million worth of MultiEmedia.com shares and $1 million cash.
Magnafield's directors Peter Woerndle and Les Jessop will continue to manage Magnafield, which will run as an independent division under the MultiEmedia.com umbrella. Both will become significant shareholders in the new parent company, and Woerndle will take a seat on the MultiEmedia.com board.
Magnafield marketing manager Alex Woerndle said he does not believe there will be any changes to the distributor's approach to resellers, and resellers are unlikely to notice any changes for several months.
"Effectively, we will still be running in an autonomous fashion," he said. "At the end of the day, it is just a change of owners."
Woerndle said MultiEmedia.com had done some extensive research into the acquisition and would not have acquired the distributor if it needed radical changes. "My understanding is that they are happy with what we are doing," he said.
The acquisition is yet to be approved by MultiEmedia.com shareholders, who will make their decision at a meeting expected to be held before the end of June.
MultiEmedia.com executive chairman, Adrian Ballantine said the acquisition provides the developer with a new distribution channel for its core software applications. It will also look to bundle its applications with the software and services of Magnafield's Vegas Technologies subsidiary, which includes a satellite content delivery business and a domain registration business, 'Click n' Go'.