ASX-listed reseller Volante Group has acquired a software and services firm in Western Australia for less than a million dollars.
Volante has bought Strategic Computer Solutions (SCS), a 17-staff software services consultancy that specialises in value-added software for Microsoft's messaging and knowledge management software (Exchange and SharePoint). The company produces value-added software such as workflow, archiving and security tools that bolt on to Microsoft's messaging products. SCS was also the first Microsoft Gold certified partner in Western Australia.
Hugh Bickerstaff, managing director of Volante Systems, said the acquisition was particularly fruitful for Volante as it builds a much stronger services presence in Western Australia and it also cements a tighter working relationship with Microsoft. Volante provides similar software services in other states, Bickerstaff said, but not to the same extent.
The company was acquired with $600,000 cash, 50 per cent to be paid immediately and the remainder within 12 months. An additional $200,000 is payable in 12 months if the business meets certain performance criteria.
Bickerstaff said the market is ripe with acquisition bargains for those companies smart enough to spot them. "The key is getting the right ones at the right time," he said. "These guys were in no way distressed, they were just looking to expand their horizons with a larger company."
The SCS business will now be re-branded as Volante Systems, which, upon the acquisition being completed, will have 26 staff in Western Australia.