Wellington-based application developer Rabid Technologies has expanded into Australia following an acquisition of specialist agency Squareweave in Melbourne.
Rabid builds web and mobile organisations across New Zealand, with key customers including NZ Post, PledgeMe and Oranga Tamariki.
Meanwhile, Squareweave specialises in digital strategy, web development and consultancy, working with Yarra Valley Water, State Library of Victoria and easyACCESS among others.
“We have worked overseas before, but with this acquisition we will have a permanent home in Australia, and we can leverage our experience on both sides of the Tasman,” said Breccan McLeod-Lundy, CEO of Rabid.
From a logistics perspective, the acquisition adds 10 staff members from Squareweave to Rabid’s team across the Tasman, with the combined entity now having offices in Auckland, Wellington and Melbourne.
The acquisition - for an undisclosed sum - also includes minority shareholding roles for Squareweave founders Will Dayble and Luke Giuliani, who will remain involved in the “strategic direction” of the company.
“Breccan and I have known each other for many years,” Dayble added.
“He has built a stable technology company with strong values and I believe that this acquisition by Rabid will give us the scale we need to grow and address the bigger technical challenges faced by government and non-profit organisations in Australia.”
The buyout represents the second acquisition in four years for Rabid, following the purchase of Auckland-based Resistor in 2015.
“Acquisition, both on and offshore, is definitely part of our long-term growth strategy,” McLeod-Lundy added.
“We would love to have company in this strategy of growing New Zealand businesses, rather than the traditional pattern of selling out for the bach, the boat and the BMW. We believe it’s a real option for many New Zealand businesses.”
In a New Zealand technology market contributing more than $16.2 billion to the national GDP - employing more than 120,000 people in the process - Rabid reported 300 per cent year-on-year increased revenue, placing 25th in the Deloitte Fast 50 in 2017.