Media Technology on trail for Australian expansion
Media Technology on acquisition trail for Australian expansion
Listed digital media logistics company Media Technology Ltd (MTG) has signed a conditional agreement to acquire the Multimedia business of Sydney-based Microview Solutions Limited
The acquisition will see Media Technology expand its customer base throughout Australasia as well as adding new technologies to its disc replication services.
It marks a further expansion of the company’s Australian operations, which currently contribute over half the company’s revenue, and follows Media Technology’s expansion into Canberra to service a growing number of government contracts.
Media Technology CEO Allan Morton says “There is a great synergy between the two companies which have traditionally been competing in the same market.
Mr Morton says, “Even though the companies compete within the ‘disc’ arena, there are a number of differences in both companies’ offerings and there was little cross over within the account base. It allows us to widen our offering to a new range of clients currently not serviced by the group which holds positive advantages for Media Technology’s growth and Micro view’s clients.
Mr Morton adds: “The combination of both companies buying power, an extended range of services and efficiency savings on both sides, gives the NSW operation a larger market share and opportunity to become one of the dominant players within the Sydney & Canberra markets.”
Microview Solutions, which is listed on the Australian Stock Exchange, is based in Sydney and its staff will relocate to the nearby Media Technology’s premises over the coming weeks.
The $A450,000 deal includes the customer base, key employees, fixed assets, inventory, IP, business name and goodwill. It also includes a performance earn-out payable up to, and capped at, AUD$450,000 based on 12 months trading and achieving warranted revenues and key staff retention during this period.
The agreement is conditional on due diligence, employee contracts and completing MTG’s funding arrangements for the acquisition; Allan Morton expects all conditions will be met by 30 September.