The acquisition complements Intec’s existing capabilities as a market leader in intercarrier billing outside of the US, and as an innovator in mediation of communications traffic in switched, un-switched (IP) and next-generation networks. As a consequence of this acquisition, and the acquisition in December 2000 of Computer Generation Inc. (CompGen), Intec will now be able to provide both mediation and inter-carrier solutions for the US market as individual products or as an integrated suite.
The initial consideration for the acquisition is approximately US$16.59 million (approximately GBP11.27 million), comprising of US$9.60 million (GBP6.53 million) in cash and US$6.99 million (GBP4.75 million) in stock to be satisfied by the issue of 1,336,173 new Ordinary Shares in the capital of Intec (New Ordinary Shares). In addition, deferred consideration with a value up to US$14.4 million (approximately GBP9.8 million) may be payable, calculated by reference to CHA’s gross revenue and EBIT targets for the calendar year ending 31 December 2001. Any deferred consideration payable will be in the ratio of 55 per cent. cash to 45%. shares. The cash element of the consideration is to be funded out of the Group’s existing cash reserves, currently in excess of GBP30 million. Applications for admission of the New Ordinary Shares to the Official List of the UK Listing Authority and to trading on the London Stock Exchange’s markets for listed securities will be made in due course. The New Ordinary Shares will rank pari passu to the existing Ordinary Shares. The acquisition is subject to a number of conditions including, inter alia, the receipt of H M Treasury consent, all of which are expected to be satisfied in the near future.
