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$5M South Island purchase for Renaissance

By Phil Boeyen, ShareChat Business News Editor

Friday 18th August 2000

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Tech distributor Renaissance is planning to pay $5.2 million for a Christchurch company with forecasted sales this year of $40 million.

RNS says the purchase of Insite Technology will greatly increase Renaissance's presence in the South Island and is part of the company's ongoing growth strategy.

Renaissance is already planning to use its eBusiness technology to keeps costs down while improving sales at the acquisition. RNS boss, Mal Thompson, says in the six months to the end of June his company lifted sales 25% but operating costs only increased 2.3%.

"We expect that our eBusiness technology will enable us to achieve similar savings and service improvements at Insite."

Mr Thompson says Renaissance is currently putting through more than $1 million dollars worth of business through its website, which is believed to be the largest eBusinesss-to-Business transaction site in New Zealand.

Around a quarter of the $5.2 million purchase price for the Christchurch company will be settled with RNS shares, and the transaction will go unconditional on August 30th following final due diligence and third party consents.

Insite was founded in 1992 and has a staff of 48. Its brand portfolio includes Asustek, Itec, Creative Labs, Philips, Fujitsu and Palm.

Insite will continue to trade as a separate company.

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