The local arm of SAP partner REALTECH is now a wholly-owned Australian company following a management buyout led by company MD Stephen Lloyd-Jones.
REALTECH Australia was a subsidiary company of REALTECH, based in Walldorf, Germany. The MBO relates to the Australian operation only and its New Zealand subsidiary would remain with the German parent company.
Lloyd-Jones is the majority owner and the company employs 35 staff.
Lloyd-Jones previously held positions with Cincom Systems, MRO Software and Legato Systems. He was also with SAP Australia, where he was responsible for the introduction of the R/3 suite to the government sector.
The company declined to reveal the details of the remaining investors in the MBO.
“I was appointed by REALTECH in a short-term consulting capacity last September with the brief to recommend strategies to significantly grow the local operation and further its independence from the German parent.
Lloyd-Jones said that around the rest of the world, REALTECH was very “technically-oriented” whereas in Australia technical competency was only one of the elements. “Here we are a channel partner for SAP and a consulting house.”
“It quickly became obvious to me that REALTECH Australia has enormous potential. The company enjoys the benefit of a long standing, loyal customer base and an enviable pool of dedicated in-house talent,” he said.
REALTECH’s former management had left and Lloyd-Jones admitted that the company was previously in disarray and was running in the red over past quarters.
He helped the parent understand the “nature of its business” here in Australia. “They saw that pulling out [of Australia] would have consequences that were undesirable.
“They felt the organisation was out of balance in an operational sense and didn’t really know why.”
REALTECH would continue with the parent company’s branding and imagery and there were no staff redundancies planned as part of the MBO.
The company remains an SAP channel partner for the SAP All-in-One and SAP Business One software platforms. The Australian operation would continue to maintain links with other subsidiaries worldwide.
Lloyd-Jones expects to introduce an employee share ownership plan for the staff in calendar Q2. REALTECH Australia would be cash positive this quarter and would look to expand its Victorian operation with new premises and open for business in QLD. “We’re a little bit Sydney-centric,” he said.