$1.6m boost for business as Enprise makes MYOB EXO acquisition
- 09 February, 2015 07:17
Software and services company Enprise Group has acquired the MYOB EXO practice of New Zealand software services company GlobalBizpro Limited.
Under the terms of the acquisition GlobalBizpro will receive cash and 200,000 Enprise shares valued at 50 cents per share, comprising a total transaction value of $750,000.
A total of 142 GlobalBizpro MYOB EXO customers and key GlobalBizpro support staff and contractors will move across to Enprise today.
Enprise Group CEO Mark Loveys says the acquisition will add around $1.6 million to Enprise Group annual revenues; around $762,000 of contracted recurring revenue per annum in licence and support service revenue, and around $300,000 to annual net earnings.
“From a strategic perspective, the acquisition adds scale as Enprise positions itself for the market rollout of MYOB’s new cloud product – MYOB Advanced – which was announced last week," he says.
"This is a totally new generation of software positioned alongside MYOB EXO. It leapfrogs existing cloud business software products. Enprise already has strong advance demand for MYOB Advanced."
Lovey says Enprise has invested in upskilling its support and consulting teams ahead of the MYOB Advanced release.
"We are well set up to be a leading reseller of this new Cloud ERP platform," he adds.
"Some customers prefer the traditional client server solution represented by MYOB EXO. Some customers want a full cloud solution.
"With MYOB Advanced we now have the opportunity to span both the client server and cloud markets with market-leading solutions in both categories."
The combination of the acquisition and the launch of MYOB Advanced are linked in the company's plan, adds Lovey.
"There are two distinct midrange business software markets," he explains. "MYOB EXO is already the leading mid-market business software solution across Australia and New Zealand with around 7000 mid-sized business customers.
"MYOB Advanced further strengthens MYOB’s market position as the leading regional business software vendor with around 1.2 million customers and our business is likewise strengthened.
“Our stated strategy at listing was to be the leading reseller across the region in both MYOB EXO and MYOB Advanced and we will continue to acquire and promote organic growth in pursuit of that goal."