Advantage Group says it has agreed to purchase the Australian Web services company Whitewolf in a deal worth up to $A9 million.
Under the agreement, which goes unconditional today, Advantage will pay $A7.5m with a further $A1.5m contingent on Whitewolf's achievement of $A2m EBITDA for the year ended 30 June 2001. Only $937,000 will be paid in cash, with the balance in Advantage shares, predominantly issued at $NZ3.50 per share.
The Australian company will, like previous Advantage Group acquisitions Glazier Systems and Webmasters, operate under the Advantage name after the sale. Whitewolf's experience in Java development and its experience with Sun and Oracle platforms is being touted by Advantage as a compliment to its resources in Microsoft platform development.
Advantage Group CEO, Greg Cross describes Whitewolf as "a quality asset with an established track record of earnings and profitability, a positive cashflow and a business base that extends our strategic capabilities.
"It fits our acquisition criteria at all points and will form the core of Advantage's Sydney-based Web services business, providing a beachhead that will enable Advantage to commence delivery of eServices into the Australian market. We are delighted to have acquired a business with a forecast EBITDA of $2 million for a purchase price of 4.5 times earnings."
Cross describes as "top shelf" Whitewolf's client list, which includes Oracle Corporation, Fuji Xerox, Hitachi, Cable & Wireless Optus and the New South Wales Police Service.