Provenco Group announces further expansion
14 September 2006
Provenco Group announces further expansion of the Vantex Technology Distribution group with a significant acquisition in Asia
Provenco Group Limited (NZSX:PVO) today announced plans to expand its Australasian based Vantex distribution group with the acquisition in Malaysia and Singapore of the Identics group of companies.
Following the acquisition, the Vantex distribution group will be positioned as the largest and only retail technology, barcoding and mobile & wireless distributor covering the Asia-Pacific region with centers in Kuala Lumpur, Singapore, Brisbane, Sydney, Melbourne, Auckland and Christchurch.
The Identics group is currently operating in the markets of southern Asia.
“The Identics acquisition will further enhance the Vantex group’s solid revenue and profit base going forward. Vantex has become a very significant and stable part of the Provenco group,” said David Ritchie, CEO of Provenco Group.
“Identics is an extremely good fit with our existing Vantex distribution group. We are very impressed with the Identics people, the business that they have developed and the opportunities that will be created. The purchase price for the business is up to US$ 7 million, which is payable over three years and in part is dependent on the performance of the Identics group.
“Strongly supported by Symbol Technologies Inc of USA, the worlds largest barcoding and mobile & wireless manufacturer, Identics has built a solid reputation in Malaysia and Singapore since its inception in 1997 and is today the major supplier of mobile & wireless computing technology in the region,” says Mr Ritchie.
Lyn Warren, Managing Director of the Vantex distribution group, says consolidating and rebranding the Australian and New Zealand businesses was the first step in the strategy to expand our retail technology, barcoding and mobile & wireless distribution capabilities.
“Now, we propose to further extend this capability into Asia through the proven distribution competencies of Vantex and Identics. It provides a very good fit with our existing businesses and its scale and positioning in the Asia Pacific market provides further strength which will enable growth in the region,” says Mr Warren.
Identics management will continue in the business.
Terms of the acquisition:
The purchase price for the acquisition is made up of three components: (i) a base price of US$ 4.3 million to be paid on settlement; (ii) a deferred settlement of $US 644,000 to be paid in equal installments over three years with the first payment due 12 months after settlement, and; (iii) future deferred payments of up to US$ 2 million based on the future performance of the business, to be made over the next three years. The acquisition is conditional at this time on completion of due diligence and receipt of certain consents and approvals. The date for satisfaction of conditions is expected to be 4 October 2006 with settlement scheduled for a week after that date.
About Provenco Provenco is a New Zealand-founded technology company operating globally with customers in 25 countries. Listed on the New Zealand stock exchange (NZX: PVO), the company has a number of international offices including those in Beijing, Kuala Lumpur, Melbourne, Sydney and Brisbane.
After more than 30 years on the technology scene, Provenco has evolved into a sound and diverse company. With a heritage in Eftpos and payment solutions, Provenco’s business now extends across a range of technology applications for the retail environment.
The company’s growing diversity is reflected in each of the key areas of its operations today – providing forecourt solutions for the international retail oil industry; Eftpos payment and retail technology in the domestic New Zealand market; and Australasia’s largest distributor of retail, barcoding and mobile & wireless technology.
Provenco’s tailored solutions for retail business environments use a combination of internally-developed software and hardware, as well as top international brands.
About Vantex Technology Distribution Limited Vantex Technology Distribution (Vantex) is wholly-owned by Provenco and is Australasia’s largest retail point of sale, barcoding and mobile & wireless distribution business with the most extensive hardware range on offer.
Vantex operates as a single business entity across Australasia and offers seamless service and delivery to all clients from bases in Melbourne, Sydney, Brisbane, Auckland and Christchurch.
Vantex is the result of the combining of three businesses. In 2003, Provenco acquired Auckland-based Transtech. In 2005, Provenco acquired Sydney-based Javelin Systems, followed by the Vantex distribution businesses in Melbourne and Christchurch. In mid-2005, all three businesses were rebranded as Vantex.
For more information, visit www.provenco.com or www.vantex.com.au