Enprise Group has acquired a 47 per cent equity stake in Kilimanjaro Consulting for $3.2 million (AU$2.9 million), as the New Zealand-based business accelerates regional growth plans.
Based in Sydney, Kilimanjaro Consulting is one of Australia’s largest MYOB enterprise resellers, specialising in consultancy and implantation services.
Specifically, the NZX-listed business has acquired a 47.09 per cent equity stake for $3,168,400 (AU$2,851,876), comprising $1 million cash to be settled from surplus cash and existing facilities, and 1,560,000 ENS shares.
As a result, Enprise Group chairman Lindsay Phillips will become a director of Kilimanjaro Consulting, with services agreements already executed between the companies to “enable synergies” by leveraging dominant positions in espective geographic markets.
Furthermore, the Auckland-based business has granted a put option for the remaining 52.91 per cent for $4 million (AU$3.6 million) subject to approval at the annual general meeting to be held on 27 October 2017 - the option can be exercised between 1 September 2019 and 30 August 2020.
With offices in North Sydney, Parramatta, Melbourne, Canberra and Perth, Kilimanjaro Consulting is the largest MYOB Exo and MYOB Advanced reseller in Australia, reporting turnover of AU$9.1 million which included recurring revenue of AU$3.2 million.
The acquisition aligns with Enprise Group’s stated strategy at listing, which was to be the leading reseller across the region in both MYOB EXO and MYOB Advanced offerings.
“This acquisition reflects that strategy,” Enprise Group CEO Elliot Cooper said. “Enprise is already profitable and growing strongly. “We achieved 65.3 per cent revenue growth in the last financial year for our existing Australian operations.
“That was profitable growth, which contributed to a profit rise of 35.1 per cent from continuing operations for the Group. The Kilimanjaro acquisition is expected to further accelerate that growth.”
According to Cooper, the shared strategy will benefit customers by applying the best processes, procedures and systems from each organisation to create the most efficient delivery of services.
In addition, Cooper said the acquisition will enable further specialisation with MYOB Advanced and therefore increase the addressable market for both companies.
“Our customers will benefit from having access to a pool of more than 80 highly skilled and qualified consultants,” he added. “Enprise will make its successful “Cloud the way you like it” service available to Kilimanjaro Consulting customers.
“This will better utilise the cloud skills and infrastructure resources already deployed by Enprise. Enprise and Kilimanjaro teams already have a history of working constructively together on the delivery of selected customer projects. This cooperation will be enhanced under the new services agreements.”
Enprise offers nationwide service and support across New Zealand and Australia, with branches in Auckland, Hamilton and Wellington, as well as Sydney and Melbourne.