Supreme Court approves Dimension Data Oakton acquisition

Australian-listed enterprise technology consultancy firm Oakton has received the green light from the Supreme Court of Victoria to go ahead with its acquisition by Dimension Data Australia.

Australian enterprise IT consultancy company Oakton told shareholders today that the Supreme Court of Victoria had approved its acquisition by Dimension Data Australia.

The company said in a statement (PDF) that the court's orders would be lodged with the Australian Securities and Investments Commission (ASIC) on November 10, at which time the acquisition scheme will become legally effective.

Oakton said its shares would be suspended, effective from the close of trading on November 10, it the lodgement goes ahead as planned.

The Supreme Court approval of the deal comes almost three months after Oakton's board of directors unanimously recommended to its shareholders the AU$1.90 share offer from Dimension Data Australia to acquire 100 percent of the company.

In August, the IT services provider — a subsidiary of South Africa-headquartered Dimension Data Holdings, itself a subsidiary of Japanese telco giant NTT — offered AU$1.90 per share to purchase Oakton, in a cash deal that valued Oakton at AU$171 million.

The price offered by Dimension Data at the time represented a 30 percent premium on Oakton's closing share price on the ASX as of August 11.

The two companies entered a partnership last year to offer services beyond IT implementations to enterprise and government customers.

Oakton has over 1,100 employees, with offices in Melbourne, Sydney, Canberra, Perth, Brisbane, and Hyderabad, and last year recorded a net profit of AU$9.16 million, down 23 percent on its 2012 numbers.

In September, Dimension Data Australia finally filled its chief technology officer position, appointing former Hewlett-Packard enterprise services executive Debra Bordignon to the role, after three years without a CTO.

"I was looking for someone to play a key leadership role as Dimension Data executes a growth strategy based on creating client value through transformational services," Dimension Data Australia CEO Rodd Cuncio told ZDNet at the time.

Oakton's share price has been buoyed since the August announcement, sitting at or just below AU$1.90 per share for the past three months. At the time of writing, the company's shares were steady, at AU$1.90 each.