Johannesburg, 28 Feb 2005
Vision Solutions, the US-based subsidiary of JSE-listed Idion Technology Holdings, is set to buy the business of UK company OS Solutions.
Vision has reached an agreement to buy selected assets and assume certain liabilities of OS Solutions for up to $3.5 million in cash plus warrants to buy Vision ordinary shares.
Idion says $2.5 million will be paid in cash, and up to $1 million additional cash will be paid on the achievement of defined revenue targets in the year after the deal is closed. The warrants, which are exercisable in whole or in part, are valued at $1.5 million.
The group says the acquisition is not expected to have a significant effect on headline earnings this year, but it will contribute significantly to sustainable profit growth in the long-term. The combined companies will have more than 2 200 customers.
OS Solutions is a provider of advanced systems management, disk and data optimisation and SMB High Availability for the iSeries market.
The sellers are CEO Mike Ryan, Susan Ryan and Paul Wade.
Idion says the deal adds new products to the Vision range and extends its market. It also creates a lower-cost offshore development opportunity and enhances cross-selling of products.
The new solution line-up extends Vision`s Orion product with, among others, a new remote journaling-based high availability offering as well as tools for data and risk resource management.
Vision CEO Nicolaas Vlok says the deal makes possible the integration of systems optimisation and data management with high availability, which meets new requirements as the high availability market continues to evolve.
The deal is subject to, among other things, a due diligence exercise and regulatory approval.
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