ASX-listed Volante has announced today it will acquire AAG Technology Services in an off market scrip deal that combines the resources of AAG-owned Netbridge and Applied Micro Systems.
The announcement ends weeks of speculation about a merger between the two after Volante completed due-diligence procedures recently.
Simon Duncan, Volante Group's executive director and acting CEO, explained the deal will see the company boost its services business.
Primarily a box mover, the addition of Netbridge's technical services and revenues of $30 million will mean around 10 per cent of Volante's revenues will be services based, Duncan said.
Once the scrip for scrip deal is completed, AAG managing director Allan Brackin will assume the role of CEO.
The post was vacated by Wayne Morris in early May 2000. Morris was running Volante when it listed in December 1999 to achieve an estimated market capitalisation of $61 million and raise $30 million for expansion plans. Volante's turnover is reportedly around $200 million a year.
The company believes the merged group can achieve in excess of $2 million per annum in rationalisation benefits from the integration of warehousing, integration, systems, purchasing, finance and administration operations.
Volante's vendor partnerships include IBM, Compaq, Toshiba, Hewlett-Packard, Microsoft, Novell, Citrix, Cisco, 3Com, Nortel Networks and Sun Microsystems.
Volante reports it finished trading yesterday at $1, implying a value of around $30 million.