Modem company Sirius Technologies has entered into an agreement to acquire 19.9 per cent of embedded technology specialist Moreton Bay.
Simultaneously, a US venture capital firm will acquire a further 10 per cent of the Brisbane-based company. Sirius and Moreton Bay are already closely affiliated, with Sirius manufacturing Moreton Bay's products. Sirius will acquire its interest through a strait share swap.
Following the acquisition the two companies will jointly develop certain technologies. "As well as our manufacturing agreement, we will enter into a cross-licensing deal for the joint development of products. In addition, we will sign a marketing agreement under which Sirius will offer our VPN and other products to the Australian market," said Bob Waldie, managing director of Moreton Bay.
According to David Stewart, managing director of Sirius, the acquisition will allow both companies to move into new markets in the "medium term" with new, co-developed, technology.
Moreton Bay proved attractive because of this and its phenomenal growth, doubling its export sales for the 98/99 financial year. Most of its sales were to the US.
Waldie attributes this success to his company's solutions, strong sales focus on the US and the company's manufacturing connections to Sirius.