Information and communications technology group Datatec on Wednesday passed a resolution giving the company’s directors the authority to issue new Datatec shares to the value of $19,8-million as consideration for the acquisition of NetStar Group Holding, announced on December 8.
NetStar is an Asia-Pacific Cisco-focused network integrator.
Datatec said that NetStar was in a net cash position and approximately 60% of the purchase consideration was represented by Tangible Net Asset Value.
“The total consideration of $19,8-million to be settled through the issue of Datatec shares includes the amount of $3,3-million to be paid to NetStar management.
“Datatec management is comfortable with the NetStar forecasts for its financial year ended June 30 2010, which are based in part on actual financial performance to date. In addition, a profit warranty for this period forms part of the transaction.” — I-Net Bridge