AltX-listed DataPro Group has announced it has acquired NetraLINK - a specialist Internet business solution provider, for R10 175 000. In terms of the acquisition, DataPro will acquire NetraLINK`s customer base and annuity revenue streams.
The purchase will be settled by the issue of a maximum of 18 500 000 ordinary shares in DataPro, to NetraLINK, at an issue price of R0.55 per share. The purchase, said Douglas Reed, CEO of DataPro Group, is subject to an aggregate turnover of R1 600 000, excluding VAT, being achieved by NetraLINK during January and February.
Reed said: "In addition to additional annuity revenue, the acquisition will have a consolidatory effect on DataPro`s market position. The purchase of NetraLINK was of a strategic nature, offering a sound business boasting a solid customer base - a vital asset in a market which is going through increasing consolidation."
NetraLINK will be fully incorporated into DataPro Propriety Ltd and the "cut-over" is expected to be a smooth transition. "This is a really good fit for us and we have NetraLINK staff members directly involved in ensuring the incorporation - from a technological and cultural point of view - goes smoothly."
Last August, in its biggest acquisition to date since listing on the AltX, DataPro bought consumer-focused ISP, @lantic, for R45 million. During March 2005 the company acquired Durban-based ISP Wickhit, for just over R1 million.
Reed commented: "For the next few months we will heavily focus on internal consolidation and the further streamlining of processes to improve efficiencies and gear ourselves for our expected future growth."
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