Local technology companies announce merger

Local technology companies announce merger

On Behalf of | Mar 12, 2013 | Uncategorized |

While there are many different types of businesses in Baton Rouge, Louisiana, a primary goal of each of them is to be successful. Companies have different strategies for achieving this success. Mergers and acquisitions, however, are a common business strategy used.

Two Louisiana technology companies, e-Gov Systems and Antares Technology, have announced their merger. Antares is a company that develops software, while e-Gov Systems operates a portal for tax payments. While the specific terms of the deal have yet to be disclosed, the CEO of Ram Ware LLC has said that the merger is about developing the companies. Currently, e-Gov and Antares have 50 employees between them. The merger is expected to double their number of employees within two years. The merger will result in both businesses functioning under the company, Ram Ware LLC. However, Antares Technology and e-Gov Systems will continue to operate separately.

While mergers are a common business transaction, before the parties enter into an agreement, it is important that the acquiring company first carry out a due diligence investigation of the merging company’s operations. In addition to looking into the merging company’s finances, the acquiring company will want insight into any and all assets, licenses and permits of the merging company. The acquiring company will also want to be aware of any material contracts or pending litigation between the merging company and any other party or business.

A business will sometimes merge with another business to strengthen its enterprise. It is, however, imperative that the acquiring business conduct a due diligence investigation into the merging company’s finances and operations before the merger is concluded.

Source: The Advocate, “Two area tech firms merge,” Chad Calder, March 4, 2013