Stuart Turk, former CEO of On The Go Technologies Group (OTG), once said he wanted to create an “empire strictly in IT” by acquiring resellers in the industry. In March, Turk’s empire plans came to an end when FTS Group acquired the company.
The Concord, Ont.-based VAR and systems integrator, which Turk said was once valued between $32 and $35 million, was later purchased for $4 million by FTS Group.
David Rasmussen, chief operating officer of FTS Group and CEO of OTG, said before the acquisition, OTG was on the brink of bankruptcy.In a previous interview, Rasmussen said, “We’re…assuming all of (OTG’s) debt. When we looked at the balance sheets and we broke down all of the expenses, we felt the deal was attractive because the money (we’d) be bringing in (would) turn this into a net income situation,” he said.
Three months later though, on June 6, changes were made to the initial March 18 binding letter for the acquisition, when both companies agreed to “amend certain terms of purchase.” On July 14, FTS Group stated that it was rescinding its purchase agreement. On the same day, OTG filed a report to the United States Securities and Exchange Commission that stated FTS Group breached its initial agreement to buy the company. Calls to both companies were not returned.