Nottingham-based Computerland has spent over £4 million in cash for the acquisition of two resellers in a bid to strengthen its networking coverage.
As exclusively revealed in PC Dealer (18 March), Computerland disclosed that it was in 'talks which may lead to acquisitions'. Computerland confirmed this week that it had agreed to acquire services reseller Netman, while a proposed takeover of Manchester-based KDL is expected to be completed in three weeks.
Graham Gilbert, MD at Computerland, said: 'We didn't have enough authorised share capital for the KDL deal so we have to have an extraordinary general meeting.' He added: 'There is no doubt which way it will go but technically we cannot complete it.'
Under the terms of the deal, Computerland will pay an initial consideration of £1 million and one million shares for Loughborough-based Netman with a deferred consideration of £300,000 over the next three years. The reseller will invest £3.1 million in the purchase of network reseller KDL.
Andrew Porter, MD at Netman, has been appointed as IT services director at Computerland although it is not clear what role Ian Hogg, managing director at KDL, will take. Gilbert said he expected to make a small number of the 124 employees redundant.
Commenting on suggestions that US alliance partner VanStar would purchase Computerland, Gilbert said: 'I don't know if Vanstar will buy the company.
My feeling is that should have done so before but it is logical to build business outside Europe.'
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