cl-nz logo
Story image

Dicker Data shareholders greenlight Express Data acquisition

Dicker Data shareholders have given the $65.5 million purchase of Express Data the greenlight.

At a general meeting last Friday, shareholders voted 121,481,742 to 85,230 in favour of the deal. Another 35,240 abstained.

Earlier, the board had advised that it had established a $130 million credit line from Westpac, to cover the acquisition of Express Data and working capital required to operate the combined Dicker Data and Express Data entities.

In a notice to the ASX, Dicker Data chairman and chief executive David Dicker said “Initially the $65.5 million for the acquisition of ED will be in the form of a bridging facility for a period of 18 days, whereby the purchase price will be paid to the vendor.

“This was required because the vendor, Dimension Data, would not assist in facilitating the financial assistance requirements of the Corporations Act.”

Dicker has also secured a $10 million loan from Investec to provide 'additional headroom during the period of integration of the combined entity'.

The sale, which includes the New Zealand and Australian operations of Express Data along with Express Online, is due to complete on 01 April.

Dicker says the board intends to issues shares 'sufficient to retire the remainder of the ED acquistion debt' around September 15, with a target price for the shares of more than $2.00.

“We believe that the company's performance and historic multiples will support this strategy and price.

“We expect this to represent up to 20% of the issued capital, thereby taking public ownership in DDR to approximately 24%.”

Story image
Interview: Equinox co-CEOs on adopting cloud and delivering business value
In the midst of global pandemic and remote working, delivering business value and adopting DevOps and cloud is an even greater challenge. David Reiss and Deane Sloan of Equinox explain how to navigate adoption and security during COVID-19.More
Story image
How our publisher harnessed machine learning to overhaul Techday websites
Our publisher, Sean Mitchell, went to CoderSchool in Ho Chi Minh City to learn how to implement machine learning into Techday.More
Story image
Google Cloud’s 2019 partner award winners
As Google Cloud continues to grow, here are the locally operating partners who are making strides with GCloud sales and services.More
Story image
PMT Security launches body-temp scanning solution for enterprise, Seadan to distribute
"It was a no-brainer for us to choose our trusted partners Seadan. We engaged and took advice from them during the decision-making process to find the best UNV product to bring to market."More
Story image
Google offers Hangouts features for free in midst of COVID-19
As businesses make the move to work entirely remotely as countries go into lockdown during the COVID-19 pandemic, Google is offering free upgrades on their G Suite for business, providing certain enterprise features for free for the next few months.More
Story image
OSS Group signs on as Dataiku's first NZ partner
“We are excited about the possibilities that machine learning and AI will enable for our clients and to add the capabilities of Dataiku to our data, machine learning and AI business,” says OSS Group's MD Ian Soffe.More