By Phil Boeyen, ShareChat Business News Editor
Wednesday 12th July 2000
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The price of $2 million in cash and shares for WEL Tech was confirmed last week, after the company announced a licensing agreement with US software giant Lucent Technologies.
Lucent has agreed to pay just over $1.3 million to integrate WEL Tech billing software into one of its own software products.
Spectrum boss Rob Levison says once a pending rights issue has been taken up, and the WEL Tech deal paid for, the company will have around $3 million dollars in the kitty.
He says some of that will be used for WEL Tech expansion but, along with script placement, the cash will also allow Spectrum to make more purchases.
Local companies with a dominant position in Australia are at the top of Spectrum's shopping list, but a straight Aussie purchase would also be considered.
Meanwhile the company believes there is plenty of room for growth for WEL Tech's products in North America.
This could come from opportunities in the US from the Lucent deal, or north of the border in Canada. Already half of the utility companies in the Canadian province of Ontario have purchased WEL Tech's billing software, known as PV2.
Each sale of PV2 currently earns the company an average of US $200,000.
Mr Levison says WEL Tech's revenue is forecast to be $3 million to the end of June 2001, up from $1.8 million in the current year.
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