Components distributor Datrontech Group Plc has acquired ú14m a year C Connect AG of Zrich, Switzerland for a maximum of $4.9m – ú3.1m. The company distributes memory upgrades, computer enhancements and other computer products to the Swiss corporate dealer market, with a substantial proportion its sales being of Kingston Technology Inc products – which keeps it all in the family. Kingston Technology is described one of the world’s largest manufacturers of personal computer memory upgrade products and Datrontech is already the exclusive distributor of its products in the UK and Eire, so the acquisition of C Connect complements the group’s operations in the UK, Eire, Belgium and the US. The initial consideration of ú2.2m will be met by a cash payment of ú1.4m and the issue of 247,522 new Datrontech shares, and the vendors of C Connect have agreed not to dispose of any of the new shares before September 30 1996 and not more than half before September 30 1997. Deferred consideration of up to ú950,000 may become payable in two equal tranches, based on C Connect’s pre-tax profit in each of the years to December 1996 and 1997. It did ú440,000 pre-tax last year. At least half the deferred payment will be in cash, with the rest to be met, at the discretion of Datrontech, either in cash or new shares where again the vendors agree to hold onto them for a decent period.
