Conditions related to Faritec's acquisition of Lechabile Storage Solutions have been fulfilled and the acquisition will now be implemented.
When the R15.98 million deal was announced, Faritec said the business being acquired consisted of assets used in the conduct of business, together with certain liabilities incurred in the ordinary course of the business, but excluding all other liabilities.
"As at the effective date (31 January 2006), the value of the sale liabilities exceeded the value of the assets of the business by R8 240 395," Faritec said.
The purchase price was settled by the assumption of the net sale liabilities, the payment of about R3.1 million in cash, and by procuring the issue of shares worth R4.6 million.
Half of the shares were to be issued to Lechabile on the close of the deal and the balance six months later.
Faritec said at the time that the acquisition would establish it as a leading provider of information integrity solutions by broadening its storage and security solutions. It will also enhance Faritec's position with IBM and Veritas, and add a FileNet capability to Faritec's technology solutions suite, it said.
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