ComputerCORP and Leading Solutions part ways

ComputerCORP has posted a statement on ASX Limited announcing the termination of its proposed merger with Leading Solutions.

In the statement, Domenic Martino, chairman of ComputerCORP, said: “Further to the company's announcement on 7 December 2007, the company has today terminated its agreement with Colli Holdings Pty Ltd.”

With speculation rife on Internet forums discussing possible reasons for the collapse, Tony Heywood, eastern region director for ComputerCORP told CRN that the termination of the merger had no impact on the reseller's expected profitability for the coming year.

“It was no longer an attractive deal,” said Heywood. “We believe we can operate as a standalone entity and we will continue to look for acquisitions and organic growth opportunities.”

Heywood could not comment on the specifics of the now defunct deal, indicating that the company was bound by a confidentiality agreement instigated by Leading Solutions.

Had the merger been realised, the combined entity would have created a 430-strong reseller outfit. During early stages of negotiations, the proposed merger was greeted with optimism.

Frank Colli, chief executive officer, Leading Solutions said earlier this year: “Our competitors will be the same as before, but our new size ensures they will seeing more of us ... It will be interesting to see how our competitors step up to the mark as the need for national partners grows.”

The agreement would have cost ComputerCORP $500,000 in cash and over 167 million shares valued at $0.17, with additional shares to be issued depending on company performance.