Proxicom, at the centre of a potential tug-of-war between Compaq and Dimension Data Holdings, has decided that Dimension Data`s offer constitutes a superior proposal.
Earlier this week Dimension Data tabled an offer to buy all the shares of US-based Proxicom for $7.50 a share. This was 30% higher than the offer announced by Compaq on 26 April.
Compaq has until now chosen to remain silent on the matter, but in terms of its initial agreement with Proxicom, the latter has had to inform the technology giant that it has determined that Dimension Data`s offer is a "superior proposal" as defined by that agreement.
Proxicom has told Compaq that it intends to terminate the initial agreement with the group and enter into agreements with Dimension Data.
The agreements with Dimension Data will come into effect if Compaq does not make a better offer by 5pm (New York city time) on Monday.
Dimension Data`s offer values Proxicom equity at $448 million.
Dimension Data says it is already one of the largest network systems integrators in the US, and believes that Proxicom is an ideal fit to enhance its e-business integration model, which combines the integration skills of both network infrastructure and application software.
"The successful acquisition and integration of Proxicom would place Dimension Data in a leading position to address the emerging requirement for integrated networking and software solutions," the group says.
"The merger would uniquely position Dimension Data to be able to offer customers a total solution ranging from consulting and development of an e-business strategy to multichannel connectivity, integration and managed services."
Proxicom reported a 126% increase in operating profit to $13.8 million for the year to December 2000, on total revenue of $207.1 million.
A net loss of $51.6 million was incurred in the March quarter this year.
The company has US offices in Reston, Boston, Chicago, Houston, Los Angeles, New York, San Francisco, Sausalito, as well as offices in Europe.
The acquisition would boost Dimension Data`s presence in the US, particularly in the west of the country.
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