Solution 6 continued to implement its aggressive growth strategy last week with a share placement worth $31.89 million.
Pulling in $30.89 million after fees, the placement, available to investors in Australia, the UK, the US and Asia, involved 10.63 million shares, valued at $3 a share, increasing the developer's issued capital by about 15 per cent.
"This share placement, in addition to our recent rights issues, will enable Solution 6 access to a strong capital base to execute our growth strategies," said Chris Tyler, managing director and CEO of Solution 6.
According to Richard McLean, general manager, global sales and marketing at Solution 6, the company's forward momentum will be funded by the share placement but will be strategically directed under a two-pronged policy. "Firstly, and probably most importantly and the most overlooked, is Solution 6's move into the application service provider (ASP) market. We announced this a couple of weeks ago with our partnership with SAP to sell its R3 software on the Net for medium enterprises. The second major part of our strategy has been global growth in our core markets in geographical areas where we don't as yet have a presence."
McLean believes Solution 6's priorities will lie in the Americas, where the enterprise developer already "has a toehold in the market", and in the expansion of its practice management software niche markets.
McLean makes no secret of Solution 6's predatory tactics in facilitating these goals. "We have been very public about being acquisition-minded. We have just acquired companies in South Africa and Ireland and will continue along this path. The time is right to announce our future intentions but as yet it is not right to share any particular names."