ComputerCORP plans $30m merger

DOMENIC Martino-chaired ComputerCORP Ltd has announced plans to merge with Melbourne-based IT company Leading Solutions, in a deal that will double the size of the West Perth-based business. Leading Solutions founder Frank Colli will become chief executive of the merged company, which aims to generate annual revenue of more than of $300 million. The deal represents a major step in Mr Martino’s plan to lift the performance of ComputerCORP, which completed a backdoor listing on the stock market last year after being in private hands for 18 years. The company has underperformed since listing, posting a trading loss of $3.1 million and a bottom-line loss of $17.8 million for the year to June 2007, including a $13.9 million goodwill write-down. ComputerCORP currently generates annual sales of $144.9 million (about 40 per cent in WA) and has 200 staff, while Leading Solutions has sales of $135 million on the east coast and 190 staff. ComputerCORP will pay $500,000 in cash and issue 177.1 million shares (at a maximum of 17 cents per share) to Mr Colli, valuing the deal at $30.1 million. Mark Beyer

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