Softchoice Corporation has entered into an agreement to acquire the technology solutions division of Toronto-based NexInnovations Inc.
Under the terms of the Agreement, Softchoice is paying $10 million to acquire the assets associated with the NexInnovations technology solutions business. This includes customer relationships and records along with certain assets. Softchoice will be hiring key employees associated with supporting these customer relationships.
“This acquisition provides Softchoice with an exceptional opportunity to add to our enterprise customer base here in Canada,” noted David MacDonald, President and CEO of Softchoice. “I am looking forward to forging stronger and deeper relationships with each of these customers as we demonstrate the immediate value that Softchoice can bring to bear in helping them to select, acquire and manage their information technology resources.”
On a trailing 12-month basis, the gross revenue of NexInnovation’s technology solutions division is estimated at approximately $200 million. Softchoice estimates that this transaction will be accretive to its shareholder value in 2008. Funding for the transaction will be provided from Softchoice’s current credit facility.