Hot on the heels of Telstra's 15 per cent investment, accounting software vendor Solution 6 has continued its acquisition strategy, last week announcing it intends to swallow privately owned Emphasys Corporation.
Emphasys, an accounting software company with an impressive history in the mid-range market and an equally impressive client portfolio, has 30 employees in three offices throughout Australia, with its head office in Sydney.
The deal will provide what Solution 6 marketing manager Rushenka Perera described as "products that suit our ASP strategy". Despite Emphasys' clients including Australian Dairy Corporation, DHL International, Email, Mayne Nickless, Opera Australia, Normandy Mining, TNT and Toll Transport, Perera claimed Emphasys will fit well with the SME market.
The offer on the table for shareholders to approve is for $4 million of scrip at $3.50.
According to Chris Tyler, managing director and CEO of Solution 6, "the acquisition of Emphasys enables Solution 6 to offer a smaller company or division an ERP style solution globally, as well as gaining a strong presence in the transport/distribution, mining and banking/finance vertical markets". He described Emphasys' financial applications as being readily deployed in an ASP rental model. "The Emphasys NTerprise tools for product architecture are very flexible and provide access to applications through a Web browser."
Steve Twaddell, Emphasys' managing director, said that he sees benefits in the merger with Solution 6, and that he is "excited about being able to deliver our solutions globally via Solution 6's international presence. I've been assured that they are keen on our products, people and our clients.
"We are especially proud of our NTerprise product."
In terms of the channel strategy for Emphasys, Perera indicated that its intention was to follow the same model, leveraging its accounting channel.