Volante has finalised details of its merger with AAG Technology following approval by AAG shareholders and given its vital services revenues a big boost in the process.
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 integrator Netbridge and Applied Micro Systems.
The deal was subject to the approval of the merger by 90 per cent of AAG shareholders, all of who 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) will pursue the SME market through the 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 - vital high margin-earning revenues to the box-based, value added reselling heritage of Volante. Company executives said earlier this year they believed the merged group can achieve in excess of $2 million per annum in rationalisation benefits from the integration of its 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 in number from 37,897,446 to 67,952,878 as a result of the deal.