IT&e Goes Networking
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[Sydney, AUSTRALIA] IT&e has signed a conditional memorandum MOU for the acquisition of enterprise systems company Network400 as part of the e-business and IT service provider's expansion plans.The acquisition of the software house, which specializes in providing hardware and software products, consulting, support and training for the IBM mid-range and PC hardware platforms, will be discharged through a combination of cash (30 percent) and $0.80 shares (70 percent) in IT&e. IT&e's chief executive Jeremy Jilla said Network400 represented an important milestone in the company's growth plan.
"Network400 represents a significant move by IT&e into the all-important enterprise systems market," he said. "Network400 will give us valuable intellectual property and expanded client service capacity in IT infrastructure, software and a range of value-added services into the medium to larger-sized enterprise systems market."IT&e said it expects to significantly increase Network400's revenues and profits as the company's current clients are given access to a wider range of IT services while Network400 is given access to IT&e's client base and larger geographical presence.
Jilla added that the proposed acquisition of Network400 represented the first of several moves to strengthen IT&e's strategic relationship with IBM by leveraging Network's Tier 1 status.
Both parties said the MOU is conditional upon satisfaction of a number of items, including a due diligence review by IT&e and a formal contract. The process is expected to be completed within two weeks.