itX acquires Sydmed for $3.2m
- 18 May, 2010 14:56
IT software and hardware company itX (ASX:ITX) has announced the acquisition of medical device distributor Sydmed, while warning it may earn less than first expected in FY10.
The company will pay $3.2 million cash for the acquisition, to be funded from existing cash reserves. itX said that after the acquisition, it will retain cash balances of $7 million and no net debt.
“The acquisition of Sydmed provides an entry for itX ino the very large and growing market for specialised medical devices, in our core business of distribution of technology related products,” itX managing director Laurie Sellers said.
The company has meanwhile warned that its earnings for FY10 may be adversely impacted by the Sun-Oracle merger, Sellers said.
Although itX’s contracts have been honoured by Oracle, the time it’s taken to complete the transaction caused some unforseen disruptions to its normal supply channel.
“The final [FY10] results will be heavily influenced by the month of June, traditionally the strongest sales month of the year,” Sellers said. “If the experiences of previous years are repeated, we could still exceed last year’s record profits.”