Paxus and IDAPS to merge

Press, 1 December 1987, Page 53

Paxus and IDAPS to merge

Idaps Australia and Paxus Information Services Group will merge, subject to the approval of Idaps Australia and NZI Corporation and regulatory authorities. New shares will be issued by Idaps Australia to NZI Corporation (the owner of Paxus), resulting in Idaps being 59 per cent owned by NZI. At the time of the merger, Idaps will be renamed Paxus Corporation. Its managing director will be Mr Neil Cullimore, the present chief executive of Paxus Information Services Group. It is proposed that the board will continue to be chaired by the present Idaps chairman, Mr Neville Bertalli. Mr John Dougall, managing director of Idaps Australia, will become an executive director of Paxus Corporation, and will be managing director, Paxus Information Services. Mr Cullimore and Mr Harry Kember, the managing director of NZI, will join the board. The companies expect to have approvals for the merger early next year and the merger effected. The net tangible assets of the new company will be more than SNZBOM and a debt equity ratio of approximately one-to-one. The earnings per share expectation for the next financial year is

more than 22c on the expanded share base.

Paxus Corporation, Limited will gennerate SIO2M from Australian based operations, S37M from New Zealand, S37M from Britain and $5.5M from Asia and North America.

Paxus has strength in all sectors of its operation in New Zealand. Idaps’ major involvement in New Zealand is through its recently acquired subsidiary, Computer Recruitment Specialists, as well as the supply and support if its credit card software to banks. In a vertical market sense, Idaps has particular strengths in Government and the banking/finance sector, while Paxus’ strengths are in the insurance/finance sector as well as the chartered accountancy market. Paxus is positioned as the largest non-North American vendor in both its vertical markets and will provide a real opportunity in Britan and New Zealand to distribute Idaps’ banking and finance products. With both Paxus and Idaps already having clients in Asia, the merger will provide more marketing/support effectiveness in that region. The new company will have a staff of 1500 people and be structured as attached.