Eagle confirms sale field thins

Negotiations on a possible sale of Eagle Technology to GDC Communications are believed to be off.

Negotiations on a possible sale of Eagle Technology to GDC Communications are believed to be off.

GDC has been talking to Eagle general manager Craig Eagle about buying the business since the start of the year.

GDC first expressed interest in the systems integrator to company founder Trevor Eagle last year, before his sudden death in December.

Craig Eagle wouldn't comment on the negotiations with GDC but confirmed the field of possible buyers or merger partners had narrowed. He wouldn't name any of the parties he is talking to.

Eagle, which has an application service provider division, would have complemented GDC’s new iVASP service.

GDC managing director Paul Honnor was unavailable when Computerworld called for comment.

Eagle Technology, which is being sued by former joint venture partner Integrated Learning Technologies, recently agreed to set aside $2.6 million for the case should the company be sold. Integrated Learning Technologies is seeking around $20 million in the High Court. Craig Eagle, Eagle Technology Group, Advanced Certifications (owned by Craig Eagle), chartered accountant Gerard Hulst and solicitors Clendon Feeney are the defendants in the case.

In the High Court last month Justice Salmon said that Eagle, while not admitting liability, has agreed to set aside $2.6 million upon the sale of his business, to be held in trust pending the outcome of the proceedings.

The case centres on a partnership between Integrated Learning Technologies and Eagle Technology formed in 1997. In 1998 Eagle bought out Integrated Learning Technologies after calling in the receiver.

Meanwhile, GDC Communications has come in with lower revenue and profits than expected in its annual results to the end of December 2000.

It made an after-tax profit of $3 million (down 6.2% from $3.2 million in 1999) on revenue of $41.5 million (a 23.9% increase from $33.5 million in 1999).

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