Solution 6 has snapped up business New Zealand business software developer exo-net in a $30 million deal.
Solution 6 will acquire 100 per cent of exo-net's intellectual property, technology, software products and business operations in Australia, New Zealand and Singapore. The company will pay $10 million in cash and $20 million in scrip.exo-net, which was developed two years ago and now includes more than 2500 end users, had planned to expand into the UK and Hong Kong later this year.exo-net's founders, David McKee Wright, Mark Loveys and Maurice Bryham and staff will remain on with the company which will be run as an independent division of Solution 6.
"Most importantly, their financial plan is on track to be cashflow-positive, delivering a significant operating profit this financial year," said Solution 6 vice president for acquisitions and marketing, Graham Mirabito.
Solution 6 will utilise exo-net's server-based B2B software, delivered through an ASP in a trial with St George Bank to integrate SMEs, accountants and the bank into a real time e-business environment.
Mirabito also said the company was attracted to exo-net's strong ties with the accounting channel, with more than 30 per cent of products sold through that industry.
"The focus on this channel will help ensure Solution 6 maintains market leadership globally in accounting by providing integrated services and opportunities to professionals and their customers," he said.