Xantium finalises acquisitions

By Iain Scott, ITWeb group consulting editor

Johannesburg, 21 Jul 2005

AltX-listed Xantium Technology Holdings says its acquisitions of ITQ and Finfleet are now final.

The 100% acquisition of the companies was first announced in May, although they were subject to certain conditions.

These included approval by the Xantium board and the completion of a due diligence investigation of ITQ and Finfleet.

The acquisitions were two of a string of purchases made by the company since listing on the JSE's alternative exchange, AltX, last August.

The frequency of the acquisitions caused some concern in the market, with some analysts saying the buying spree was reminiscent of the acquisition and listings frenzy of the late 1990s.

However, Xantium CEO James Murray has said the close timing of the acquisitions allowed the new companies to trade as an integrated group for the full financial year, which began last month.

He said in May that the short- to medium-term focus would be on consolidation and continued organic growth, although the group "will remain opportunistic in respect of acquisitive growth and will buy businesses that make sense for the group".

The Xantium share closed at 59c yesterday, down 3c or 4.8% from the previous close.