Listed channel company IT&e has hit the acquisition trail after receiving a unanimous nod from its investors and is currently scouring the marketplace with $17 million in its pocket.
"We are armed and hunting for significant business opportunities to rapidly expand IT&e," says IT&e chief executive, Jeremy Jilla. "Unlike many of our competitors who are burning cash, IT&e has substantial revenues which will generate strong operating cashflows over the next 12 months. This places us in a very strong position to exploit current share market conditions and acquire attractive technology assets at affordable prices," he says.
Jilla was reluctant to talk at length about IT&e's plans but he did confirm it is currently in discussions with several companies. Particular interest is being expressed in the e-commerce sector and complementary IT businesses with "high growth and strong management" being set as top priorities.
IT&e was formed earlier this year when a group of IT channel companies merged operations and floated on the ASX. It has subsequently become a case study on how a bunch of resellers with synergies can merge and raise capital through the stock exchange. Since floating at $0.50 per share, the group has seen that value rise to the point where it is now trading in the mid 80-cents rangeAccording to IT&e chairman John Craven the company has $12 million cash on hand with another $5 million expected to flow in from the sale of a 15 per cent share placement to Asian financial service group, OSK Asia Limited. OSK is IT&e's second investment in the Asian marketplace, its first being an interest in Asia Online. Jilla says the company will continue to extend technologies into markets with far greater commercial opportunities than those presented in Australia.