Volante has announced it will put its proposed acquisition of an as-yet-un-named software company on hold because it is being acquired itself.
The change in strategy will result in a “minor negative impact” on this year’s profitability to the tune of $300,000 in after tax profit.
Volante, which is in the process of being sold off off-market following an unsolicited takeover offer by Commander Communications had announced the acquisition in early February.
“As announced previously, transaction closure for the Acquisition is subject to final contractual negotiations between the parties. While the price parameters and key terms have been agreed, the final and full terms of the transaction have not yet been settled. In view of the Board’s unanimous recommendation to accept the increased offer (in the absence of a higher financial proposal) from Commander Corporation Pty Limited (a subsidiary of Commander Communications Limited), a decision has been made to defer the acquisition of this business pending the outcome of the Commander Offer.” The company said in a statement to the Stock Exchange.