Internet software developer MultiEmedia.com is continuing to build its online portfolio, following the purchase of online professional services firm WSA Online for $3 million plus shares.
WSA, which offers a range of interactive solutions across Internet, wireless and broadband platforms, will become a wholly owned subsidiary of MultiEmedia. However, the company will retain its independence with management and staff continuing to operate from its established premises in Sydney and Melbourne.
The purchase appears to signify a slow recovery of the IT market, which has taken a thrashing in recent months. WSA founder and CEO Richard White-Smith says the merger provides an opportunity to build online services in an environment where the companies that are still standing and operating profitably should do very well, as the desire for online solutions to improve efficiency continues unabated.
"In addition to the benefit of access to resource, WSA and MultiEmedia share the same determination to build value for shareholders by developing leading intellectual property and new products and services, supported by a bedrock of profitable ongoing revenue from the supply of services and existing product sales," White said.
WSA has been issued with 7.7 million MutliEmedia options exercisable within 2 years, and White-Smith will take a seat on the MultiEmedia board.
Shaun Levin, MultiEmedia.com CEO, says he is impressed by WSA's "historic capability to adapt to market need, produce design work of world-class standard, have a very stable base of long-term blue chip clients."
WSA posted revenues of $5 million for the 1999/2000 financial year, after selling its specialist online media buying arm to eMitch in May 2000, and its 1-e00 call centre management technology to Membercorp (now Reply 2) prior to that.
The acquisition will be finalised in June. It is subject to the completion of due diligence and the approval of MultiEmedia shareholders.