ASX-listed ComputerCorp has acquired Victorian-based government reseller FedIT and its notebook depot arm Notebook Depot, for around $1.4m in cash and shares.
Under the terms of the acquisition, ComputerCorp would pay part of the $1.4 million with just under three million ComputerCorp shares at $0.25 and a cash sum of $741,562 by November.
The combined turnover for the privately owned FedIT and Notebook Depot for last financial year was $20 million.
Stephen Bowtell, co-founder and CEO of FedIT said there were only two ways to grow the company, become self-funded or do it through a public company.
“We have been approached by larger multi-national players in the past, however we declined their offer because we saw no value in being acquired by them,” he said.
The two companies share some vendor partners, including HP and Toshiba and both companies also have a similar customer bases including public sector and education clients, said Bowtell.
“We are the preferred supplier for HP and Toshiba products to the Australian Defence Force,” said Bowtell.
“We are also the preferred suppliers for the state and local government in Victoria. We also have a number of private schools in Victoria as our client - which we have in common with ComputerCorp.”
Alongside the reseller business, the deal also sees ComputerCorp pick up Fed IT's Notebook Depot arms in Victoria and Queensland – which are run by Stephen's brother Jeff Bowtell.
Bowtell said all 20 staff would be retained, increasing total employee numbers to 300. “My brother Jeff and I will stay on with the company. My new job title will be state manager and Jeff will become the national sales manager,” said Bowtell.
ComputerCorp snaps up FedIT
By Lilia Guan on Sep 11, 2006 3:18PM