Software development house Technology One has consolidated its move into the local government market with the acquisition of ProClaim software.
The $10.6 million deal will see ASX-listed Technology One acquire privately owned ProClaim, to be paid progressively over two years. Payments will also include the issue of $1.167 million in Technology One shares, with a further $1.008 million issued between December 2000 and 2002.
ProClaim Software was established five years ago, selling integrated software suites in property, rating and licensing to councils. Founder and managing director David Spencer said the company's 42 staff would be retained to further growth of the business.
"The strength of the merger is that both companies have similar ways of developing software and doing business and there is a good match of cultures," he said in a statement.
Technology One's managing director Adrian Di Marco has long voiced his company's acquisition ambitions, but it is the first purchase by the company since it floated on the stock exchange 12 months ago.
Di Marco said the company investigated around 30 possible acquisitions before deciding to buy ProClaim.
Technology One will provide the infrastructure and backing to finance its software development and expansion plans.
"Our solution will encompass rating, property, and licensing with financials, payroll and human resources," he said. "These systems are best of breed in their own right, but they can also be bought off-the-shelf as a totally integrated solution."