Little over a month after acquiring UK software group Keystone Solutions and putting its Alphawest services business up for sale, Solution 6 has announced it intends to acquire US software vendor Novient.
Novient develops HR and project management software for professional services organisations, the target market for most if not all of the software sold by the Solution 6 Group.
To acquire the US vendor, the ASX-listed group will pay $US12.5 million in Solution 6 shares, $US150,000 in cash, and a commitment to an additional payment of $US1.8 million in shares if performance targets are met.
Novient has 150,000 licensed users in 48 countries, and counts several of the world's largest IT service providers as its customers and business partners, such as Accenture, CSC, HP and KMPG. Importantly for Solution 6, the acquisition is a foot in the door of the US market.
Solution 6 CEO Neil Gamble said the group is looking to integrate Novient into its professional services software business as rapidly as possible to take advantage of cross-selling opportunities.
The acquisition of Keystone and Novient, and the subsequent shedding of its services business, sees the group now focusing purely on professional services software for the likes of consulting firms, lawyers and accountants. Solution 6 said its talks on the sale of Alphawest are at an "advanced stage."