Richard Bradley, managing director at ComOps told CRN the Heads of Agreement is conditional upon satisfactory due diligence, documentation and the necessary approvals.
“Microster is a Newcastle-based company that develops, distributes, and supports workforce management systems, like rostering software. Some of its clients include airlines, Federal Government, P&N Ports and various health organisations in New Zealand. Microster fits into our model,” said Bradley.
According to Bradley, the purchase price is $6.5 million, which equates to four times the net profit after tax for the calendar year ended 31 December 2007, and is payable in a combination of cash and shares.
“Additional top up payments based on the NPAT of the Microster business increasing by more than 15 percent year on year will also be made subject to the growth targets being achieved,” he said.
Bradley told CRN Microster was third company ComOps had picked up in five months and was in line with ComOps’ strategy to grow the company through acquisitions.
“We started courting them six months ago because of they want to be part of large company. We certainly bring credibility to the company being an ASX-listed company with government clients. We have already acquired Human Capital Solutions and we also recently acquired Australian Workplace Software,” he said.
All 15 of Microster’s staff will move over to ComOps, with the exception of four shareholders, two of whom will retire once the sales transaction is concluded, said Bradley.
“Once we have concluded the sales it will take around three months for the cultures to align and then we will see benefits from profit in the first year of trading. The company will stand alone under its own name and operate as an arm of ComOps,” he said.
Bradley claimed that once ComOps has consolidated all three new acquisitions, it will take a breather from buying anymore companies and focus on reaping the benefits from the new acquisitions.
ComOps is a Microsoft Gold Partner and Progress Premier Partner. It has a 35 year history in the IT industry and listed on the ASX in 1999.
The company develops, sells and supports software solutions in the ERP,
Business Intelligence, Mobile Sales Force Automation, e-Commerce, Retail
and Human Capital Management markets.
These solutions are used by a range of blue chip clients such as Toll Holdings, Coca-Cola, Berri, Golden Circle, Australia Post, Toshiba, Orica, Lexmark, Canon, Queensland Government, NSW Lotteries, Commonwealth Bank of Australia and AMP, to name a few.
ComOps buys NSW-based Microster Pty Ltd for $6.5M
By Lilia Guan on Apr 2, 2008 2:14PM