DVT unknown

DVT Holdings buyingXSI Technology Pty off Powerlan

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    Completion of Acquisition of XSI 24/5/02 1:33:55 PM
    HOMEX - Melbourne
    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.
    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.

    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.
    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.
    ---------------------------------------------------------------------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.
    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.
    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.
    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
    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.
    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.
    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.
    For further information, please visit the companies' web sites at:
    www.dvtholdings.com.auwww.e-datagroup.com.au www.xsi.com.au
    or contact the below.
    Mark Hubbard
    DVT Holdings
    Limited (02) 9262-9600
    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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