PWR is divesting itself of businessesbetween 5 and

Sale 24/5 100% XSI Technology Ptyto DVT.
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PWR is divesting itself of businesses that have plenty of revenue low margins of between 5 and 7% and would be better run by another firm such as DVT Holdings that already has a similar business and can extract the economies of scale from it.>>>>Fact&opinion.
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Completion of Acquisition of XSI 24/5/02 1:33:55 PM
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DVT HOLDINGS LIMITED 2002-05-24 ASX-SIGNAL-G
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HOMEX - Melbourne
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+++++++++++++++++++++++++
DVT Holdings is pleased to announce that its subsidiary E-Data Group
Pty Limited has today successfully completed the purchase of the
business and certain assets of XSI Technology Pty Limited ("XSI"), a
wholly owned subsidiary of Powerlan. This acquisition was
foreshadowed in an announcement to the market on12 April 2002.
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XSI is a consistently profitable business operating in the growing
data storage market in Australia. It has internationally recognized
technical and marketing leadership, and specializes in the
configuration and supply of advanced data storage disc arrays.
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E-Data was acquired in April 2000 as a wholly owned subsidiary of DVT
Holdings. E-Data has been in business for 14 years, and operates as
information management and storage specialists, servicing customer
requirements to effectively manage, access, protect, store and
service electronic information. E-Data specializes in the
configuration and supply of advanced data storage tape solutions.
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The merger of these two complementary businesses will deliver
considerable synergies within the data storage and management market.
E-Data is focused on data protection, and has competitive advantages
in data access, protection, and services. XSI is focused on data
storage, and has competitive advantages in data access, storage and
security. E-Data holds valuable exclusive and master distribution
rights to major data technologies; XSI is recognized by IDC as
Australia's leading independent disc array provider. Both companies
operate through offices in Sydney, Melbourne, and Canberra, and XSI
will bring to the group a presence in Perth and Brisbane as well.
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The merger of the two organizations will increase the range of
products that can be offered by the group to its existing and
prospective customers. Every organization that utilizes computers
requires disc storage. Every organization that utilizes disc storage
requires a back-up tape system. XSI is a major provider of disc
arrays and a minor supplier of tape systems. E-Data is a major
provider of tape systems and a minor supplier of disc arrays. Merging
the operations, skills, and experience of each business creates a
unit of excellence in the two key areas of data management. Analysts
predict data management to be the major IT opportunity over the next
two years, and the market increasingly wants one supplier to manage
total data solutions.
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Together, E-Data and XSI will be the leader in the data storage
solutions market, being in a position to offer its customers a
one-stop shop solution for all their data storage needs.
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Max Goldsmith, founder and CEO of XSI, will manage the new combined
entity. Garry Humphreys, founder and CEO of E-Data group, will remain
on the board of E-Data, to assist with integration and business
development. Other new board appointments will be made with the main
goal to develop the company further.
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The assets acquired include stock, property plant and equipment,
select debtors, intellectual property, contracts, and goodwill.
Liabilities assumed include certain employee entitlements and future
service commitments under maintenance contracts. The cash
consideration paid for these net assets was$4,600,000. DVT Holdings
has provided 100% of the finance to E-Data Group to complete the
transaction.
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On a combined basis, E-Data and XSI reported earnings before
interest, tax, depreciation and amortization of $954,000, on revenues
of $24,598,000, for the ten months ending 30 April 2002. Again on a
combined basis, the businesses forecast EBITDA earnings of $1,394,000
(before restructure costs) on revenues of $30,098,000 for the
financial year ending 30 June 2002. Restructure costs are expected to
be in the range from $500,000 to $750,000.
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The merger between these two companies will result in a single
infrastructure and support group to the combined organization, which
in turn will lead to substantial cost savings. Additionally, sales
will benefit from a greater market penetration through the single
offering of an expanded range of products and services. As a result,
the group is forecasting healthy growth in its earnings and revenues
for thecoming financial year.
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The merger of the two companies is in line with the strategy
announced to the shareholders at the extraordinary general meeting in
January this year: to develop the E-Data business while continuing to
look for further opportunities to re-expand the DVT Holdings group.
Several projects are under consideration in this regard.
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For further information, please visit the companies' web sites at:
www.dvtholdings.com.auwww.e-datagroup.com.au www.xsi.com.au
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or contact the below.
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Mark Hubbard
EXECUTIVE DIRECTOR AND COMPANY SECRETARY
DVT Holdings
Limited (02) 9262-9600
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A copy of the full announcement, including the Company background for
XSI Technology Pty Limited, is available in PDF format on
www.asx.com.au. Alternatively it is available for purchase from ASX
Customer Service on 1 300 300 279.
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Sale 24/5 100% XSI Technology Ptyto DVT.
---------------------------------------------------------------------
PWR is divesting itself of businesses that have plenty of revenue low margins of between 5 and 7% and would be better run by another firm such as DVT Holdings that already has a similar business and can extract the economies of scale from it.>>>>Fact&opinion.
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