Mincom moves quickly to quash job loss claims

Jobs guaranteed despite acquisition

It's hard to make job guarantees to employees during an acquisition but Mincom CEO Richard Matthews has taken the plunge.

In the wake of analyst claims that job cuts are likely following a $315 milliion takeover bid by US investment firm Francisco Partners to acquire Mincom, Matthews moved quickly to reassure the company's 1,300 staff there will be no cuts.

He also reiterated claims there company will remain headquartered in Australia.

Last week Hydrasight research analyst Michael Warrilow warned cost cutting was necessary to secure a profit on the private equity firm's investment in Mincom . The deal is set to close in three months.

"There will be no changes in the day-to-day operations of Mincom," Mathews said. "The company will remain headquartered in Australia and there will be no changes to the company's management team or product strategy [and] no jobs will be lost."

While Mathews acknowledged acquisitions can lead to changes, he was adamant the deal would not shake up the company.

"The deal is different [to other acquisitions] because most of our employees are tied in consulting and development which have direct affects on the quality of product," Mathews said, adding that the company's increased capital would solidify this.

He said Franciso Partners' financial support will allow the world's sixth largest ERP vender to grow.

"Francisco Partners will enable Mincom to enter its next phase of growth by providing the funds to grow product and service offerings which in turn will provide opportunities for career advancement for employees," he said.

"In other words, this is purely about giving Mincom the capital to go forward and is nothing more than a change in the share register."

Join the newsletter!

Error: Please check your email address.

More about Francisco PartnersMincom

Show Comments

Market Place