Menu
ComCom investigates Objective Corp's buyout of Master Business Systems

ComCom investigates Objective Corp's buyout of Master Business Systems

November buyout was not submitted to ComCom for clearance

Credit: Dreamstime

The Commerce Commission has opened an investigation into the acquisition of Master Business Systems (MBS) by ASX-listed Objective Corporation.

The commission will consider whether the acquisition would be likely to substantially lessen competition in any relevant market in breach of section 47 of the Commerce Act. 

The investigation comes after Objective did not apply for clearance for the A$5.4 million acquisition which occurred on 29 November last year.

Sydney-based Objective and Feilding-based MBS were both suppliers of software used to lodge building consent applications and manage the building consent process.

MBS' systems were used by 52 per cent of local councils in New Zealand, 35 in total.

"The focus of the investigation will be on the extent of competition that is likely to have been lost between Objective and MBS as a result of the acquisition, and the extent to which the merged entity will likely be constrained from raising prices or lowering the quality of either its products or associated services," the commission said in a notice today.

Objective acknowledged the regulator's announcement in a note to shareholders today saying the commission had not yet reached a view about whether a breach of section 47 of the Commerce Act 1986 had occurred.

Objective's CEO, Tony Walls, said the company had been assisting the commission with its enquiries over recent months and would continue to engage to address the concerns raised.

The commission administers a voluntary notification regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. 

If firms do not apply for clearance, the commission can initiate an investigation into a proposed or completed acquisition under section 47. 

If a person breaches section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.

Read more: Profits soar for Objective

"We have been delighted by the very strong support we have received from customers of both MBS/GoGet and Alpha One over this past year," Walls said.

"It is well appreciated by our customers across New Zealand that we are totally committed to our investment in world class New Zealand innovation, including the establishment of our new building solutions centre of excellence in Palmerston North, which now has more than 75 full time employees." 

New solutions under the Objective Build brand will complement our existing products and will be progressively delivered to customers later this year, Walls added.

They will generate significant benefits for the New Zealand community through material innovations in lodgement and assessment of building consent applications and improved adherence with national building standards.

Master Business Systems' annual revenue represented less than 5 per cent of Objective’s total 2019 revenue, Objective said.



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.

Tags Objective CorporationMaster Business Solutions

Events

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