Purchase sets up Provenco for Australasian dominance

Eftpos machine company Provenco Group is to buy Melbourne-based Vantex in a move that will see it become Australasia's largest distributor of retail and portable sales technology.

Provenco said yesterday that it would pay about $20.31 million for point of sale technology specialist Vantex in a combination of Provenco shares and cash.

The purchase is conditional on due diligence, which should be completed by March 11.

Vantex will be Provenco's second Australian acquisition this year, after buying Sydney's Javelin Systems in January.

The deal includes Christchurch-based Vantex Wholesale Distributors New Zealand, in which Vantex had a small shareholding.

Provenco chief executive David Ritchie said Vantex would give the group a solid revenue and profit base.

Together with Javelin and Provenco's third subsidiary Transtech, it would make up half of the group's turnover.

"It certainly positions us as leader across Australasia now in mobile, wireless and retail technology," said Ritchie.

Provenco distributes technical equipment for retail stores check-outs such as barcode scanners, weighing equipment and point of sale terminals.

Its mobile and wireless equipment provides portable versions of these for use in warehousing and freight management.

"Vantex provides a good fit with our existing businesses and its scale and positioning in the Australian market provides a strong platform for growth and will enable us to broaden our product offering," said Ritchie.

Vantex management will be retained.

Shares in Provenco closed up 6c at 97c yesterday, having ranged between 56c and 93c in the past 12 months.

Last month, Provenco forecast a net profit of $6 million for the year to June, up 18 per cent on last year's $5.1 million.

The company is facing possible fines of almost $2 million after the Securities Commission laid insider trading charges in December, relating to three separate periods of trading in Provenco shares between February and March 2003.

Ritchie said the company had filed its defence a few weeks ago.