Eftpos company Provenco is to buy Sydney-based Javelin Systems in a move to extend its distribution of Symbol Technologies' bar code scanning products into Australia.
Auckland-based Provenco said yesterday that it would acquire Javelin for about A$3.4 million ($3.74 million) up front and future payments of up to A$4 million
over the next four years.
Meanwhile, Provenco subsidiary Transtech Distributors will appoint Javelin to distribute Symbol products in Australia.
Symbol products are used here by a number of large retail and warehousing operators, including Progressive Enterprises, Foodstuffs and The Warehouse.
Provenco chief executive David Ritchie said Javelin was "a very good fit" with his company's existing business.
"It enables us to grow into the Australian market."
Symbol Technologies products are already distributed in Australia by rival Warp, who were "pretty well established", Ritchie said.
But Symbol was looking to offload its own direct distribution business in Australia and was "very keen to get us in there".
Symbol managing director Kurt Hansen said from Melbourne that his company had been looking to expand its Australian market share.
"The experience offered by Javelin and Transtech are the ideal vehicle for us."
The purchase is subject to due diligence which should be completed by later this month with settlement on January 31.
- NZPA
