Australian software vendors, SmartTrans and Resource Connect, have reached a $16.6 million merger agreement that sees both companies boost their field services management platform prowess.
SmartTrans, which is publicly-listed on the Australian Securities Exchange (ASX), provides transport and field service management software solutions, while Resource Connect is a personnel supply chain management solution software provider.
Resource Connect’s patented icuro.com.au platform is a cloud-based solution that facilitates the coordination of movement of personnel at multiple locations in real time, and is largely used by enterprises for the management of field services deployment.
The business operates from its headquarters in Hendra, in Queensland.
On 16 October, SmartTrans announced it would acquire the unlisted cloud-based logistics software company for $16.6 million in an all-scrip transaction.
According to SmartTrans, Resource Connect’s iCuro platform has “strong synergies” with its existing supply chain solutions for transport and field services operations.
“The combined entity will offer clients an outstanding suite of planning, management and tracking solutions,” the company told shareholders.
The proposed acquisition will add Resource Connect and its patented iCURO cloud logistics management platform to SmartTrans' supply chain management division.
The deal is expected to give SmartTrans the capacity to tap significant additional contracts by expanding into new sectors, such as aged care and health, by offering clients an unparalleled suite of planning, management and tracking solutions.
The acquisition transaction proposes the issue of a total of approximately 2,778 million new SmartTrans shares in exchange for 100 per cent of the shares in each of Resource Connect and iCuro.
The proposed transaction is subject to a number of conditions, including receipt of necessary ASX and ASIC approvals, completion of due diligence enquiries, SmartTrans’ shareholder approval and SmartTrans entering into a share purchase agreement with shareholders of Resource Connect and iCuro.
“Resource Connect is a highly complementary and strategic business that has rapidly established a strong market position across the resource, energy and construction industries,” SmartTrans chairman, Mark Vaile, said. “Its cloud-based technology platform and our Software-as-a-Service (SaaS) capability has considerable potential across other industry sectors.”