ASX-listed KAZ Computer Services has flagged its intention to acquire more intellectual property, picking up Western Australian developer DesignPlus for a song.
All 11 DesignPlus staff have been offered positions with KAZ, with the deal structured as an up-front cash payment of $225,000, followed by a further cash payment of up to $100,000 and the issue of $100,000 worth of shares at market value dependant on the business unit's performance.
According to its directors, the client-server and Web applications developer provides customised business applications to the energy and resource vertical industries.
Lagis Zavros, WA state manager of KAZ, claims the move bolsters the company's software development capabilities in WA where KAZ has been traditionally strong in infrastructure services such as network integration and outsourcing.
"We do quite a bit of software development in Sydney, but this enhances our offerings in WA," said Zavros.
The acquisition was spawned by previous sub-contracting agreements between DesignPlus and KAZ. The companies also share a mutual customer in DesignPlus' largest account holder, Alcoa World Alumina Australia.
"The acquisition enhances our profile with the client," Zavros told ARN.
However, the acquisition paves the way for KAZ to leverage the intellectual property into its existing customer base across the country. "This is a possibility," confirmed Zavros.