St George takes a $7M bite of Sausage for e-trade agreement

St George takes a $7M bite of Sausage for e-trade agreement

Internet and e-commerce developer Sausage Software has announced a strategic partnership with St George Bank that will see the financial institution take 6 per cent, or a $7 million dollar stake in Sausage.

Signalling Sausages' push into key vertical markets, Wayne Bos, director of Sausage Software, said the partnership was much "more than just an equity relationship" and will enable Sausage to develop further e-commerce solutions in the financial/banking sector.

"This partnership positions Sausage to develop technology for a variety of bank-supported e-commerce solutions in conjunction with St George. We are looking to take this same approach with other markets," he said.

The partnership involves St George subscribing for 5 million ordinary shares in the software developer in a private placement at $1.35 per share, representing a 6 per cent stake.

The announcement comes fresh off the bat of Sausage's recent acquisition of ERP software developer, Prometheus Software Developments. Although a separate venture, Bos claims it is in line with Sausages' strategy to make acquisitions and alliances to expand the company's global and corporate reach.

"Prometheus' existing corporate clients provide Sausage with a foundation on which to build its e-commerce activities," he said. "In addition, Prometheus' expected revenue of $18 million for the current year will further boost Sausage's profitability."

With Sausage rolling out technology into St George, Gil Hoskins, chairman of Sausage Software, said "having extra money around" is good for Sausage as it continues with its drive to become a more integrated Internet company.

Hoskins told ARN that Sausage had a lot of experience "locked up in the company" from its beginnings as the developer of its flagship Web-authoring tool HotDog. As such the company has been very active in unleashing these skills in new business areas through acquisitions and alliances, a trend Hoskins said is likely to continue.

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