IT distributor and software publisher, Manaccom (ASX: MNL), has acquired enterprise software vendor, Star System Solutions, for $3.45 million.
Manaccom CEO, Mike Verveka, said the acquisition meant it could start making moves into the enterprise software market.
“We’re already into retail and we want to broaden our exposure into more up-market type software,” he said. “It fills a gap for us in the enterprise market. We were working on building it up and we can now accelerate that through this acquisition. We’re now a reasonably sized player in the enterprise market.”
All four Star Systems staff will be kept on-board and it will continue to trade under the same name.
Star System's flag ship product, Star Projects, is an integrated client, project management, expense recording and billing system that enables users to manage projects and staff.
Veverka also hinted the distributor was looking at acquiring more organisations in the $1-2 million profitability range.
“We don’t buy struggling businesses that need to be turned around,” he said. “They have to be in IT and have some logical fit in Manacom, in either our software or our online division.”
The acquisition process is expected to be settled by November 14.
$1.95 million of the acquisition was vendor financed and $1.5 million will be paid up front.