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Advantage invests in Aussie web services market

By Phil Boeyen, ShareChat Business News Editor

Friday 18th August 2000

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Listed New Zealand tech company Advantage is pushing into the Australian web service business with an agreement to buy Australian web company, Whitewolf online.

Advantage CEO, Greg Cross, says Whitewolf is a quality asset with an established track record of earnings and profitability and a positive cashflow.

"It fits our acquisition criteria at all points and will form the core of Advantage's Sydney-based web services business, providing a beachhead that will enable Advantage to commence delivery of eServices into the Australian market."

He says the company brings with it significant partner relationships, depth of expertise and a top shelf client list.

Advantage will pay A$7.5 million for the web company, with a further A$1.5 million on the achievement of A$2 million EBITDA for the year to the end of June 2001.

A$937,000 will be paid in cash and the balance in Advantage shares, predominantly issued at NZ$3.50 per share.

Whitewolf was founded in 1984 and counts Oracle, Fuji Xerox, Hitachi, Cable & Wireless Optus and the NSW Police Service amongst its clients.

Whitewolf MD, Jonathon Wolfe, says becoming part of Advantage means his company can extend its business plans based on a larger resource base in Australia and develop those relationships further across Asia Pacific.

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