E-commerce security heavyweight SecureNet is acquiring Sydney-based e-commerce consulting firm ETC Electronic Trading Concepts (ETC).
The acquisition, which is currently subject to due diligence, is expected to be completed in early July.
The acquisition price will consist of a base price and an earn-out based on future performance. The base price will be satisfied partly in cash and partly by the issue of SecureNet shares, the proportion of which will be determined at the time of completion.
The earn-out will be satisfied by the issue of SecureNet shares, and the issue price of the shares will reflect the weighted average sale price of SecureNet shares in the 15 days prior to June 9.
Geoffrey Ross, managing director of SecureNet, said that the acquisition will "move SecureNet strongly up the e-commerce consulting chain into high-powered consultancy capabilities".
"ETC has made a name for itself for its high level of expertise in e-commerce consulting and strategy development including in the area of security."
Ross also said that the acquisition will meet the "large requirement" for consulting expertise among companies undertaking e-commerce projects. "This acquisition will offer Australian and overseas companies unmatched strategic and technical support, and a trusted partner to work with them to establish and operate their e-commerce ventures."
ETC, which will retain its Sydney base, has consulted in the design and implementation of e-commerce strategies for over 600 projects over the past eight years, including a number of large public key infrastructure projects. Its customers include government, banking and corporates, both locally and overseas.
David Jonas, ETC's managing director, also said that the acquisition will provide ETC with the capital and infrastructure backing needed to augment its existing range of services, particularly in the areas of PKI and trust services delivery.