Executive LAN Management Will Be Bought, Combined

FutureLink Distribution Corp. agreed to buy Irvine-based Executive LAN Management Inc., the No. 1 North American distributor of Citrix Systems Inc. software, for about $60 million in cash and stock plus future payments to gain more small and mid-size customers.

The combined company, to be named FutureLink Corp., will be based in Irvine.

FutureLink, which provides computer equipment, training and maintenance, will pay $12 million in cash and 6 million shares for the distributor, which operates as Micro Visions.

The shares would be worth nearly $48 million, based on the price of FutureLink’s stock, which closed Thursday at $7.97 a share.

Depending on future profits, the Calgary, Alberta-based company will pay as many as 2.4 million more shares worth about $15.9 million based on the Thursday closing price.

Executive LAN Management, with 1998 revenue of $13.7 million and 80 employees, has offices in Atlanta, Las Vegas, Los Angeles, Phoenix and Raleigh/Durham, North Carolina.

FutureLink had 1998 revenue of $2.4 million.

The transaction is expected to close in September.

Cameron Chell, FutureLink chief executive, will be chief executive of the new firm and Glen Holmes, chief executive of Executive LAN Management, will be president.