Recently listed company Xantium Technology Holdings has acquired Spec Systems, a provider of barcode, label and PVC card solutions to the government and private sectors.
Xantium, which listed on the JSE's AltX exchange last month, says it is paying a maximum of R30 million for the business.
Spec was founded in 1992 by Colin Roux, the company's sole shareholder. Roux has entered into a service contract with Xantium for a fixed minimum period of three years from the effective date of the deal, which is 1 September.
Xantium says Spec is a good fit to its 51% subsidiary, Xantium Digital Card Systems, which provides card-based solutions to government, financial services, transportation, healthcare, mining, education, retail and other industries.
"Spec Systems has two divisions, card systems and label systems," says Xantium CEO James Murray. "The company specialises in label and PVC card printing solutions, as well as offers value-added services such as self-adhesive label production, in-house card and label bureaus, technical expertise, delivery and barcode scanning solutions.
"Spec's sole distribution rights in SA on Zebra card printer products and the synergies with our Digital Card Systems unit were the reasons we explored the acquisition with the company.
"This acquisition not only gives Xantium a national geographical presence, but allows us to grow and complement Xantium Digital Card Systems by further driving the development and support of card-based solutions into Africa."
Xantium will make an initial payment of R7.5 million, with R5 million of that in cash and the balance in Xantium shares at 50c a share.
Further amounts of up to R13.75 million in cash and R8.75 million in shares will be paid out based on an agreed formula for the years ending on 31 August 2005, 2006 and 2007.
The Xantium share rose by 3c or 6.7% to close at 48c on the JSE yesterday.
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