Volante has finalised details and merged with AAG Technology following approval by AAG shareholders.
ASX-listed Volante announced in August it would acquire AAG Technology Services in an off-market scrip deal that combines the resources of AAG-owned Netbridge and Applied Micro Systems. The deal was subject to approval by 90 per cent of AAG shareholders, all of whom are either employees or directors of the company.
The transaction, which involves the issue of more than 30 million Volante shares, has been approved by the boards of both companies, according to Volante.
AAG's chief executive Allan Brackin will assume the role of Volante managing director and CEO, a post which was vacated by Wayne Morris in May. Simon Duncan will remain the group's executive director and Mark Fox takes on the role of secretary.
Volante's enterprise division, Volante Integrated Technology (VIT), ccontinues to pursue the SME market through its Volante online initiative. The deal cements the group's move into the logistics market. Through its Netbridge operations, AAG provides technical services in networking, knowledge management, e-commerce and support. Company executives said earlier this year that the merged group could achieve more than $2 million per annum in rationalisation benefits from the integration of warehousing, integration, systems, purchasing, finance and administration operations.
Volante, which reportedly has a turnover of around $400 million a year, has vendor partnerships with the likes of IBM, Compaq, Toshiba, Hewlett-Packard, Microsoft, Novell, Citrix, Cisco, 3Com, Nortel Networks and Sun Microsystems. Its share issue will increase from 37,897,446 to 67,952,878.