Horizon Technology said today it has agreed with the principal vendors of Client Solutions Ltd to amend the way in which it will pay for the remainder of the company.
The vendors have waived most of their entitlement to Horizon shares in return for a cash payment.
Horizon acquired Client Solutions in November 2000 for a maximum amount of €12.7 million. Of this amount, €5.1 million was paid in cash at completion and the remaining €7.6 million was to have been payable in Horizon shares on June 30th, 2002 and September 15th, 2003, subject to certain performance targets being reached over the following two years.
Based on the original agreement and actual performance relative to targets, Horizon estimated shares to the value of at least €5.1 million would have had to be issued to the vendors.
Now, as a result of the amendment agreement, Horizon will have to pay a total cash sum of €2.457 million on July 1st, 2002, plus Horizon shares to the value of €583,000 to be issued on June 30th, 2002 and September 15th, 2003.
In addition, it will make a cash payment of 25 per cent of the profits of Client Solutions in the year to June 30th, 2003, subject to a cap of €350,000.
PA