The total cash consideration is $1.8m
Nexus Management, a provider of IT managed services, has acquired the business, assets and certain liabilities of Scott Technology Corporation (STC).
STC is a company created for the purpose of facilitating a management buyout of a business and certain of the assets of Resilience, a US-based company which develops technology infrastructure, in particular firewall services.
The directors of Nexus believe the acquisition will be cash generative in the short to medium term and earnings enhancing in the year ending September 30, 2010. In order to effect the acquisition the company has established a new subsidiary company which will be called Resilience Technology Corporation (RTC).
The total cash consideration is $1.8m. The acquisition is being funded by way of a $320,000 payment on completion and the assumption of an $80,000 existing liability of STC. The balance is to be satisfied by a vendor loan note, which is repayable as to $150,000 by March 31, 2009, $500,000 by April 30, 2009 and the balance by October 31, 2009. The company also anticipates advancing $200,000 to RTC in the short term to provide additional working capital.
Pete Paterson, chairman of Nexus Management, said: I believe the Resilience product offering and the quality of its management team will fit neatly into the Nexus portfolio of products and companies. The acquisition will allow Nexus access to the Network Security market. We intend to enhance the current Resilience product range and will seek to run the company as it has been run to date with the help of its existing management team.