Montech Holdings (ASX:MOQ) shares are expected to trade higher after the company moved to make two key acquisitions in the cloud sector.
Montech has signed a Binding Heads of Agreements to fully acquire Technology Effect Pty Ltd and Breeze Training Pty Ltd, which is subject to various conditions precedent.
Technology Effect delivers IT solutions and Breeze Training covers application development and Cloud integration products and solutions.
The deals are separate in nature but complimentary for Montech, and they fit directly into the company strategy to develop, build and acquire a number of complementary Cloud focused technology businesses.
Consideration if the deals go ahead would be:
- Technology Effect: 441,399,450 Montech shares and A$3 million in cash, with the vendors owning around 45% of the company of a fully diluted basis.
- Breeze: founders/vendors will receive 141,666,667 Montech shares and $750,000 in cash.
Highlighting the potential of the companies, Technology Effect and Breeze are both amongst the top Microsoft Azure Partners in Australia, and in 2014 either won or were finalists for Microsoft Worldwide and Australian awards for their Microsoft Azure integration solutions for Customers.
Technology Effect has a blue chip client base
Customers of Technology Effect include Bank of Queensland, QSuper, Rio Tinto, Bidvest, BDO, Laing O’Rourke, SunSuper, Brisbane Catholic Education, Brisbane Airport Corporation, RP Data and Logan City Council.
