MOQ eyes fresh acquisitions in expansion push
- 31 October, 2017 11:46
After taking an acquisition breather since wrapping up its purchases of at least two tech companies last year, MOQdigital has revealed it is back on the hunt for new acquisition targets.
The systems integrator's parent company, the publicly-listed MOQ (ASX:MOQ), told shareholders on 31 October that the business is actively pursuing mergers and acquisition (M&A) opportunities with ongoing assessments of businesses that have the potential to increase the company’s footprint, especially in New South Wales and Victoria.
MOQdigital provides consulting, integration and managed services across infrastructure, applications and data in Australia and New Zealand. The company also has a Centre of Excellence in Sri Lanka.
In an announcement filed with the Australian Securities Exchange (ASX), MOQ also revealed two new partnerships with software-as-a-service (SaaS) vendors Literatu and Unit4.
Both Literatu and Unit4 have a focus on the education market and, according to MOQ, with a need for strong Australian integration partners.
Formal announcements of the partnerships are expected to be made next month.
However, the company said that as a result of the MOQ-Literatu partnership, SkoolBag is now offering the NAPLAN (National Assessment Program – Literacy and Numeracy) Explorer analytics product to schools.
MOQ operates SkoolBag, a SaaS communications provider it acquired in March 2016. The company has identified new opportunities during the first quarter of the 2018 financial year, particularly in the K-12 education space.
The ASX-listed company also said that all clients were migrated to its new Information Technology Service Management (ITSM) platform on 28 November.
MOQ closed the 2017 financial year with a 62 per cent year-on-year increase in revenue, to $54.9 million. However, after costs, the company posted net profit after tax (NPAT) of $100,976. It should be noted that this result was a substantial turnaround from the previous year’s NPAT loss of $534,604.
At the time, it was also revealed that the company spent more than $1 million on integration and restructuring costs during the financial year ending June, following its acquisitions of Tetran Group and SkoolBag last year.
In 2014, MOQ announced plans to acquire systems integrators and cloud specialists Breeze and Technology Effect, which were merged into MOQdigital.