(MENAFN - ProactiveInvestors - Australia) Digital marketing group Q Ltd (ASX:QXQ) has entered into a non binding agreement to buy White Data, a deal that would give Q access to White Data's strategy to deliver a high security data centre and disaster recovery solutions.
The term sheet is subject to due diligence and will require the approval of Q's shareholders.
Under the indicated terms of the deal, Q will issue 89,254,019 fully paid ordinary shares to the shareholders of White Data and the merged entity will be called White Data Limited. Based on Q's current share price of 0.014, the deal is valued at 1.25 million.
If a binding agreement is reached, Q will undertake a capital raising of 4,000,000, with the ability to accept over subscriptions of up to an additional 1,000,000 through a share issuance.
A binding formal agreement is likely next month with the prospectus for the capital raising likely in February.
White Data is an early stage data centre management company that provides a high security data centre and disaster recovery solutions targeting markets within Australia and Asia-Pacific region.
It has an agreement with a developer for the provision of a turn-key data centre as part of its first campus in Brisbane, with construction expected to start next year and completed in late 2014.
It aims to provide services and solutions designed to support state and federal government using next gen technologies.