IT software and services distributor, itX Group Ltd (ASX:ITX) says it is one step closer to being taken over by overseas electronic distribution company, Avnet.
itX has recommended the proposed acquisition by Avnet's local subsidiary, and entered into a scheme of agreement.
Under the scheme, itX shareholders will receive $1.55 in cash for each itX share.
itX says it believes the scheme will allow shareholders the opportunity capture a significant premium to the current share price.
Avnet has stated that it believes the acquisition will allow it to expand into the Asia Pacific region and increase its scale and scope in Australia.
For the fiscal year ended July 3 2010, Avnet generated revenue of $19.16 billion.
itX Group reported a profit of $7.12 million for the year to 30 June 2009.
ITX Price at posting:
$1.42 Sentiment: None Disclosure: Held
