Local accounting software developer Solution 6 has announced a $150.5 million merger with US-based Elite Information Group.
Like Solution 6, the Nasdaq-listed Elite provides software products and services to the financial, legal and professional services sectors. Company officials say it is the leader in its field in the US.
The merger will be partly funded by Telstra's $50.05 million cash injection into Solution 6, which was announced yesterday. Telstra now has a 24 per cent stake of solution 6, just one per cent off its goal of 25.
The Elite merger gives Solution 6 a significant representation in the US market. Company officials also believe the deal will assist Solution 6 to move into the Asian and European markets.
The acquisition is currently subject to foreign investment approval, but will see Solution 6 owning 100 per cent of the company. Earlier this week, Solution 6 announced the $40 million acquisition of online legal information provider, Lawpoint, from Telstra. Similarly, this transaction is subject to shareholder approval.
Solution 6, who suspended its listing on ASX yesterday, plans to return to the ASX today.