Stan Beer
Wednesday, 20 September 2006 19:58
IT Industry -
Strategy
Page 1 of 2
Online payments services provider Oriel Communications Limited (ASX:OCO) has signed a Heads of Agreement seeking to acquire information management firm, Value Chain (International) Limited for shares worth up to A$40 million.
On completion of the acquisition, former
Infosys Australia founder and Chief, Ananda Rao, who heads Value Chain
will join Oriel as Chief Executive Officer of the newly expanded
company.
Following the merger, a share consolidation and capital raising of A$12
million, including a proposed priority offer to existing shareholders,
will be undertaken to fund expansion for the combined business. Value
Chain has committed to provide further capital over a three year
period, matching the proposed capital raising made by Oriel.
Value Chain is an Australian business headquartered in Melbourne that
operates in the space of “Business Process Management” (BPM). Accordng
to Value Chain, BPM facilitates the aggregation, processing and
distribution of digital information in ‘real time’; by optimising
manual business processes and offering monitoring and control of IT
systems, to enable best practice client service delivery and corporate
performance management.
On completion of the proposed acquisition, the combined company will be
positioned as a Pan Asian information management and payment systems
group with over 700 employees and offices in Australia, China, India,
Singapore, Europe and the United States.
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