In a statement to the ASX on Friday 21 September, DSQ Holdings Limited’s chairman Christian Bernecker announced that resolutions had been passed at the DSQ (formerly Datasquirt) annual general meeting to enable the acquisition of Enprise Group, from Enprise founder Mark Loveys’ company Encap Group Ltd; the delisting of DSQ from the ASX; and its relisting on the NSX as Enprise Group.
Mark Loveys and Enprise Group CFO Elliot Cooper now hold around 30 percent of the share capital of Enprise Group. Other significant investors include Neiser Capital Investment fund, managed by former Boston Consulting Group partner Dr Jens Neiser, and Nightingale Partners of Sydney, managed by Christian Bernecker.
DSQ chairman Christian Bernecker will continue as chairman of Enprise Group, with Jens Neiser, Mark Loveys and Elliot Cooper continuing as directors.
Enprise Group operates through two divisions – Enprise Solutions and Enprise Software, and has a 33 percent holding in New Zealand cloud startup company 2Cloud.biz. Enprise Solutions – which specialises in MYOB EXO enterprise implementation, support and consulting – has more than 700 customers across New Zealand and Australia, with offices in Sydney, Melbourne, Auckland, Hamilton and Wellington. Enprise Software develops and supports add on applications for SAP’s Business One software, servicing a global customer base from its Auckland development and support centre.
Mark Loveys says the listing of Enprise Group is the latest chapter of a business journey that began with the development of Exonet and its sale to Solution 6 in August 2000 for A$30M. Following that divestment, Loveys led a management buy back of the Enprise direct sales division of Exonet to form Enprise Group. With funding from New Zealand venture capital firm TMT Ventures and the New Zealand Government Venture Investment Fund, cloud provisioning software company EMS Cortex was merged with Enprise Group, and Enprise Software – an SAP Business One specialist development and implementation divisions – was formed. In 2011 Citrix Systems acquired EMS Cortex and in early 2012 Loveys acquired all the shares of Enprise Group.
At the same time, DSQ Holdings Ltd (formerly Datasquirt Ltd) – another software company co-founded by Mark Loveys and listed on the ASX in 2009 – sold its software and operations to US-based LiveOps.
Following the sale of the Datasquirt business, the DSQ board announced to the market that it would be looking for a suitable business to acquire in order to build shareholder value beyond what could be achieved by holding on to the cash and liquidating.
Loveys offered Enprise Group to the DSQ board at an equivalent price as that paid for Enprise plus incurred costs. At the DSQ AGM shareholders voted to accept the offer, with Mark Loveys and Elliot Cooper abstaining.
“I am delighted with the outcome,” Loveys says. “Enprise is a profitable and growing business that I would be happy to own in my own right. But it will be an even better business as a publicly listed company with better access to investment and the means to grow faster through strategic acquisitions.
“Both operating divisions of Enprise are ideally positioned in growing market segments. Enprise Solutions has momentum, reputation and cloud expertise that add up to a potent force in the MYOB EXO market across the region. Enprise Software has strong international growth prospects, continuing to develop add on software for SAP Business One.
“As Enprise grows I intend to maintain my shareholding at 20 percent – the maximum permitted before I would be required make a full takeover offer - and will work to build Enprise Group into a substantial software and services company delivering outstanding shareholder value,” Loveys says.
Founded in late 2002 by the developer of Exonet, Mark Loveys and former Exonet managers Leanne Graham and Elliot Cooper, Enprise Group has two operating divisions: Enprise Solutions and Enprise Software.
Enprise Solutions is a leading specialist provider of solutions based on the MYOB EXO software platform. It supports more than 700 MYOB EXO customers across Australia and New Zealand, and provides specialist high level support to a growing number of MYOB resellers. Enprise Solutions is a certified MYOB EXO customisation and development partner.
Enprise Software is an international SAP Business One software development partner. Enprise Software develops, sells and supports a suite of award winning add-on modules for the SAP Business One business software platform through a global reseller channel. Enprise Software’s flagship add-on module 'Enprise Job' is now in use by more than 300 SAP Business One customers around the world. Other high-demand SAP Business One add-on modules from Enprise Software include: Enprise Rent, Enprise Service and Enprise ImportGL. www.enprisegroup.com
Released by Sayle Noble & Associates on behalf of Enprise Group. For more information please contact Tony Noble on +64 9 307 8450 or +6421 477 007; or Mark Loveys on +64 275 971 889.