Adelaide-based software developer, Prophecy International has announced plans to acquire UK-based group Tecsun Computer Services, in an effort to build its offshore presence and ramp-up demand for its new enterprise management solution, eFoundation.
The transaction is a clean capped-royalty deal on future sales, involving no exchange of scrip or drain on Prophecy's cash reserves, according to Alan Greig, Prophecy's executive director. Tecsun, a software company specialising in human resource systems, has built a CrystalHR suite around Prophecy's framework technology and shareholders will continue to collect royalties on the sale of the product.
Tecsun has a relatively small customer base of 15 to 20 clients which Prophecy intends to build with some marketing muscle. "We're taking over the business," said Greig. "It's a great product but they don't have the facilities to promote it properly."
The UK move is part of an aggressive strategy to reinvent the 20-year old firm on the back of its new eFoundation product. The applications Lego-set approach is turning heads with its combination of technical stability and simplicity, according to Greig. eFoundation eludes the typical pigeon-holing of business management suites into categories such as accounting, CRM and warehousing for the simple reason that it can be constructed and reconstructed into whatever an operation requires.