Forum Archive Index - August 2000

["Wedde, John" <john.wedde@cit.ac.nz>]

Those doubters could look at this latest ITC notice to the NZSE. The rumour,
news of which I first offered to Chatters several weeks ago, not as an
attempt to ramp the stock but  merely, in the spirit of the group, to pass
on information which I had received from a reliable source,  has in this
case turned out to be true!!
Exo-net cost  $1.5mill. and sold for $12.7 mill. That's an incredible
result! ITC's total assets are only  $27 million. Surely this must boost
the share price. 

 IT Capital Ordinary Shares ANNOUNCEMENT  
ITC
14/08/2000
ASSET

REL: 1130 HRS IT Capital Limited

ASSET: ITC: SALE OF INVESTMENT IN EXO-NET INTERNATIONAL TO SOLUTION 6

IT Capital Limited has announced it has reached agreement to sell its stake
in exo-net International to Solution 6 Holdings Ltd (ASX, SOH) for
approximately A$9.9 million or NZ$12.7 million _ NZ$9.6 million in cash and
NZ$3.1 million in Solution 6 stock._
_
The sale comes after IT Capital acquired 35 percent of exo-net for NZ$1.5
million through a series of investments beginning in June 1999. Under the
terms of the definitive agreement, e-business solutions provider, Solution
6,
will acquire 100 percent of exo-net and IT Capital will receive its 33.2
percent (on a fully diluted basis) of the sale proceeds from this
fast-growing e-commerce software developer. Settlement is expected to occur
on 18 August 2000._
_
Vendors of the remaining shares include exo-net partners David McKee Wright,
Maurice Bryham and Mark Loveys along with the company's Australian and
Singaporean partners. _
_
IT Capital Chief Executive Officer and exo-net International Chairman, Jeff
Dittus, said "the exo-net sale was IT Capital's second successful exit
following earlier realisation associated with BMC Media in January 2000.
Together these exits have generated a 1,259 percent return on invested
shareholder funds as we converted NZ$1.8 million of capital into NZ$13.6
million._
_
"These transactions are evidence of our ability to successfully grow
Australasian companies while generating exceptional returns for our
shareholders," Mr Dittus said. _
_
"The proceeds from this sale further strengthen our financial position and
ensure ITC's near-term profitability," he said.  _
_
"IT Capital provided exo-net with more than just investment capital," said
David McKee Wright, Chief Executive Officer and co-founder of exo-net.  _
_
_
_
_
_
"IT Capital's global network of strategic partners opened doors to pave the
way for exo-net to expand its activities into new markets," Mr McKee Wright
said. _
_
"With ITC's help, exo-net set-up offices in Singapore, where the Government
is actively embracing e-commerce, and Australia where exo-net 3000, a fully
web-enabled e-commerce accounting system, is meeting the needs of Australian
businesses under the GST scheme implemented in July this year," he said._
_
"IT Capital's contribution to exo-net included strategic business
development
and international marketing expertise, and services such as legal advice and
HR assistance." _
_
IT Capital Executive Vice President, Simon Brown, said "IT Capital focuses
on
New Zealand and Australian companies whose primary business is the
development and commercialisation of proprietary technology with global
applications. _
_
"exo-net met IT Capital's investment criteria because it had a proven
management team, its software was in the 'sweet spot' of e-infrastructure
solutions and it offered a leading-edge technical solution with unrealised
potential in Australia, Asia and the United States," said Mr Brown._
_
"After making an initial investment in mid 1999, IT Capital immediately set
about developing a close working relationship with exo-net and became a key
business advisor," he said._
_
"exo-net is now ready to embark on the next phase of its development and we
strongly support exo-net's new owner, Solution 6 _ the leading provider of
practice management, client accounting and taxation software services in
Australia, New Zealand, South Africa and the UK," Mr Brown said._
_
Solution 6, a successful company with a distinguished brand and strong
global
distribution channels, will enable exo-net to expand its international
client
base. The Australian-based firm will acquire exo-net's business operations
in
New Zealand, Australia and Singapore including intellectual property,
technology and software products._
_
Mr Brown said "exo-net will provide Solution 6 with a proven management team
of technologists and marketers who have a track record of developing and
commercialising technology.  There are clear synergies between exo-net and
Solution 6 _ both focus on delivering fully integrated end-to-end e-business
products to the SME market and both are tapping into new Application Service
Providers (ASPs)."_
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