LONDON, June 13 -- British computer maker Amstrad announced Monday that it will buy personal computer company Viglen for 30 million pounds ($45 million) and pay out the same amount over the next three year's depending on the company's profitability.
Amstrad said it would pay the extra cash if Viglen's pre-tax profits exceeded 27 million pounds ($40.5 million) in the three-year period.
Viglen, based in Alperton, Middlesex, designs and assembles desk-top and portable computers made to customer specification. The company earned pre-tax profits before exceptional items, of 9 million pounds ($13.5 million) in the year to March 31, 1994.
Viglen, which sells under its own brands of Genie and Contender, has 8 percent of the direct sales market.
Amstrad said the acquisition would be financed from existing cash resources of around 135 million pounds ($202.5 million).
In a trading statement released with the announcemnet Chairman Alan Sugar warned that market conditions had not improved and trading was slower than expected.
Amstrad said the Italian arm of its operations continued to experience difficult market conditions and it was likely that further provisions will have to be made for the reorganisation of the business by the end of the year.
In the six moonths to Dec. 31, 1993, Amstrad posted a profit of 1.7 million pounds ($2.55 million), down from 5.6 million pounds ($8.40 million) in the corresponding period a year ago. Sales dropped to 140 million pounds ($210 million) from 202 million pounds ($303 million).