Menu
Contact flogs off Evolution share

Contact flogs off Evolution share

PRINTING brothers Philip and Henry Norcross have secured all but 5% of e-business company Evolution, after power company Contact Energy sold its 30% stake to them for an undisclosed sum.

But the sale works out at an after tax loss of $300,000 for Contact, which paid $2.5 million for its share in September 2000.

Before the sale, the Norcrosses owned 65% of Evolution through their company Dynamic Commerce. The pair has investments in the design, printing and stationery business through the Norcross group of companies.

Contact Energy says it sold its share because the company did not fit its business model. “Since acquisition, the results of Evolution have not been material,” it told the New Zealand Stock Exchange on May 12.

This is in contrast to the Evolution website, which says Contact was “so impressed they bought a large percentage of our company”.

And a Contact statement at the time of purchase said the 30% acquisition was “a strategic investment that will form a cornerstone of Contact Energy’s plans” to sell electricity and gas to 500,000 customers.

Henry Norcross says Evolution turns over about $2 million a year; a lot less than the $10 million that Contact expected it would. But this does not mean Dynamic Commerce’s investment is a bad one, he says.

“For us, making half-a-million a year is good but for them it’s not. We get the control to move in the direction we want. [Evolution] is profitable.”

Evolution was formed in 1999 and lists New Zealand Dairy Foods, Farmers and BJ Ball Papers as customers, as well as Contact Energy, which secured perpetual rights to use Evolution’s products. The company hit the business news pages in October 2002 when it bought 52% of local accounting software outfit Maxiom. But Norcross says Maxiom “probably” won’t be trading in the near future because it has taken too much money and time to turn it into a sellable product. Former Maxiom and Evolution managing director James Dale and some staff hold the remaining 5% of Evolution.

Dale works for vodka maker 42 Below in New York.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments