IT Capital Buys 100% of Terabyte Interactive
Business-to-Business E-Commerce Focus Decisive Factor
IT Capital Ltd (NZSE: ITC) today announced an agreement to purchase Terabyte Interactive Ltd, New Zealand’s internationally acclaimed interactive media company. The conditional agreement, subject to shareholder approval and documentation, will see IT Capital pay a total of $8.4 million. This will take the form of $7.7 million in cash payable over a six month period, from the date of closing expected in mid-December, and $700,000 of ITC stock at 40 cents.
The change of ownership follows the recent EMMA
and Invision awards won by Terabyte in Europe and the United
States for its part in the development of Virtual Spectator,
the revolutionary new way to watch live sport on the
“Terabyte’s expertise in web development and interactive media makes us one of the leading business-to-business e-Commerce and media companies in Australia and New Zealand,” explains Craig Meek, Managing Director of Terabyte Interactive. “We have world class capabilities, and a growing measure of international recognition. That’s great, but it’s not enough.”
“What we now need is an owner who is capable of facilitating our operation in an increasingly global market, a partner that can assist us to achieve the valuations that these will fetch on international markets. As an incubator within IT Capital, we have access to the venture capital, the global relationships and the market entry expertise that will enable this to happen.”
“IT Capital will make a major
contribution to our success as a business-to-business
e-Commerce company, growing our capability, and bringing to
our customers USA e-Commerce solutions sourced through it’s
“We were attracted to Terabyte because of its world class capabilities and world class brand,” says Keith Phillips, Managing Director of IT Capital Ltd. A former CEO of Terabyte himself, Keith knows the capabilities of the latest acquisition and has worked in e-Commerce and interactive media for the last 12 years.
“Essential to our e-Commerce strategy is the outstanding capability that resides in Terabyte,” he explains. “As a proven incubator of scalable products, Terabyte will become the cornerstone of IT Capital’s business to business e-Commerce strategy, gaining additional benefit from venture capital opportunities through our international network.”
“ Our intention is to bring down from the USA additional e-Commerce solutions that will strengthen the solutions and services of Terabyte to customers in New Zealand and Australia.”
The region’s leading “venture catalyst”, IT Capital focuses on investing in New Zealand and Australian based e-commerce companies with the intention of transplanting them into larger markets, principally the United States. Addressing the funding gap that inhibits most innovative Australasian firms, IT Capital provides both early stage funding and management expertise that are not readily available in local markets.
Applying a portfolio approach, the company allows investors to diversify risk and participate in e-commerce opportunities, thereby giving public market investors access to successful businesses at private market prices. IT Capital’s international network of venture partners and technology companies accelerates the global transfer of technology. More information on IT Capital Limited is available at http://www.itcapital.net, while information on Terabyte Interactive Ltd can be found at http://www.terabyte.co.nz
For further information, please call: