Xantium Technology Holdings has bought the business of Foster Melliar for R6.13 million with effect from 1 March.
Xantium, which is listed on the JSE's alternative exchange, AltX, says Foster Melliar complements the services of subsidiary Xantium Professional Services (XPS).
Foster Melliar, which was founded in 1991, operates in the IT services management arena and is an IT Infrastructure Library (ITIL) training company. ITIL, says Xantium, is the de facto standard for IT service management.
XPS, it adds, deploys IT consultants to assist clients to bridge the gap between business and IT.
"Foster Melliar complements this process by providing training to XPS's clients as well as an entr'ee for XPS to offer related services to clients serviced by Foster Melliar," the group says.
Key Foster Melliar executives have entered into three-year service contracts.
Xantium says the initial payment of R2 million comprises R1 million cash and R1 million in Xantium shares of 53c each.
In addition, it will pay R1 million cash on the first and second anniversaries of the completion of the deal and R1 million in shares on the same dates, provided the key executives are still in the employ of the company. The balance consists of the assumption of agreed liabilities.
The Xantium share was trading at 50c late this morning, up 1c or 2% from Friday's close.
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