ASX-listed integrator, CSG (ASX:CSV), has granted an international software license to Entellect Solutions (ASX:ESN) in exchange for a share in the company.
The deal will see CSG’s Learner Enterprise and Learner Analytics software sold by ESN in all markets excluding Australia and New Zealand. About $9.75 million worth of shares in ESN will be issued to CSG, which represents 18 per cent of the company.
ESN will raise $25m under a placement of 125m shares. As part of the deal, four new directors will be appointed to form a five-member board.
According to CSG CEO, Denis Mackenzie, the deal allows his company to exploit its intellectual property (IP) in foreign markets without using without changing its focus on the Australian market.
“It gives us a stake in a business which should be able to fully exploit the IP CSG has developed,” he said in a statement. “This business will be lead by a capable senior executive and has a strong pipeline of opportunities around the world.”
The new venture is set to target the US, UK, Middle East and Canada. ESN recently moved to acquire a group of Canadian companies, Ontario Limited, and took on a UK-based channel consultant, Winningtons Financial PR Limited.
CSG has recorded strong revenue and growing profits thanks to an uptake in IT and print services. Profits rose 11 per cent to $12.3m in the first half to December 31.
The NT-based company has scored major contract wins in the Territory and has been named preferred tenderer for the State Government's whole-of-government service contacts]].