Enprise Group has bought MYOB EXO practice Global Bizpro for up to $750,000 including earnouts, in the accounting software reseller first acquisition since it debuted on the NZAX in December.
The Auckland-based company will pay $275,000 in cash and issue 200,000 shares at 50 cents each after settlement for the software service company, which is expected to add $300,000 to annual profit and $1.6 million in revenue, Enprise said in a statement. It will pay a further $375,000 in cash, if the company fulfils financial milestones over the next 12 months.
Under the deal, Enprise will gain 142 GlobalBizpro MYOB EXO customers as well as Global Bizpro support staff and contractors, adding to its Enprise Solutions business, which is a reseller and servicer of the MYOB EXO accounting software. The acquisition comes after it bought Datagate Innovation, a developer of cloud portal software for telecommunications and utility companies, for $120,000 last year.
In December, Enprise narrowed its first-half loss to $79,000, from $110,000 in the same period a year earlier. It didn't announce a dividend, and said it held cash and cash equivalents worth $603,000 at its Sept. 30 balance date, from $665,000 at March 31.
The company debuted on the NZAX via a compliance listing, meaning it raised no cash. Shares of Enprise last traded at 50 cents, unchanged for its listing price, having climbed as high as 60 cents.