WebSpy looks to acquire Marketboomer group

Peter Dinham
Sunday, 11 October 2009 05:42

IT Industry - Strategy

Australian-based Internet services provider, WebSpy, is set to acquire procurement and materials management system provider, Marketboomer, with its announcement that it has entered into share sale agreements for a full buyout of the Marketboomer Group.

The proposed deal, still to be approved by shareholders, will involve WebSpy’s acquisition of the entire Marketboomer group of companies, Marketboomer Pty Ltd and Ortas Enterprises Limited, which own the global Marketboomer business and assets.

In its announcement to the ASX, WebSpy said the acquisition signified a broadening of the company’s focus into an associated internet based procurement and materials management business, which was “highly complementary to the current principal activity of WebSpy,” and would provide ”significant synergy benefits and strategic expansion opportunities for WebSpy and sets a sound foundation for earnings growth.”

WebSpy’s CEO, Jack Andrys, says the acquisition has the potential to substantially enhance company cashflows and revenue, and to generate profitable operations for the WebSpy group in FY2010.

According to the ASX statement, the consideration for the acquisition of $4,765,651 is to be satisfied by the issue of 115,000,000 fully paid ordinary shares and 361,565,100 deferred fully paid ordinary shares, and approximately 92% of the consideration shares will be subject to a voluntary escrow period.

Andrys said the Marketboomer group’s significant customer base represented  a “captive market for WebSpy’s products which offer further cost savings and productivity improvements,” and the company will potentially gain additional operational and development capability in Europe, the Middle East, China and South East Asia.

According to the statement, the WebSpy group will integrate both management and technical development resources (as relevant) “offering opportunities for significant improvements to intellectual property, sales and marketing and administration with a flow on benefit of reduction in indirect and overhead costs.”

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