itX confirms takeover talks

itX has responded to reports that today claimed a takeover offer of the IT distributor was on the table.

In a statement just released to the ASX the company confirmed it was in talks with a buyer. 

"The company is in discussions with an interested party regarding a preliminary non-binding indication of interest to acquire 100 percent of the ordinary shares of itX," company secretary Rick Marks said.

The statement was in response to a report by Fairfax papers that claimed a "takeover offer may be on the way."

The report claimed the first sign was the company's rising share price.

The distributor's recently released after tax profit for the financial year ending 30 June was $7.58 million, an increase of 6.5 percent over the previous corresponding period.

However, the company said it was significantly impacted by Oracle's takeover of hardware vendor Sun Microsystems.

Slow hardware sales were offset by strong revenues in itX's web hosting segment and technology products.

itX's share price was trading at $1.39 at the time of publication, from a $1.24 close yesterday.