ASX-listed Commander Communications (CDR) has agreed to acquire reseller consortium Axon Group in a cash and share deal worth $9.6 million.
The Axon Group comprises independent IT resellers including Metropolitan Business Machines in Sydney, Axon Computers in Melbourne, General Business Machines in Adelaide PT Computer Professionals in Perth and Computerquest in Canberra.
The acquisition would expand Commander's data and enterprise business with the potential to deliver an additional $70 million in revenue in the current financial year, Commander claimed.
The Axon Group is an education, corporate and government provider with an emphasis on notebook and mobile computing.
Commander claimed the acquisition positions it as the largest full service supplier of ICT products and services to the education sector in Australia.
Commander would pickup 60 staff as a result of the acquisition.
Under the agreement, Commander would acquire the group for $6.6 million in cash and 2 million CDR shares valued at $1.50 per share.
The acquisition was being funded from operational cash flows and the undrawn components of Commander's $79 million line of credit with its bankers.
The acquisition was expected to be completed on 16 August.
Commander Communications managing director Adrian Coote was not available for comment at press time.
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