Softline Limited ("Softline") is pleased to announce that it has acquired 100% of AccountMate Software Corporation ("AccountMate"), a well established US based midrange accounting software vendor for a consideration of US$8.5 million. The transaction is effective from 1 April 2000. The acquisition will;
Add to Softline's core product range, providing an established base in the mid-range accounting software market;
Further expand Softline's reach and distribution within the US market by providing access to a well established and recognised value added reseller channel;
Provide opportunities to leverage synergies by utilising AccountMate's established brand to cross-sell Softline technology, including Pastel's SME accounting software solutions, into the existing channel and user base;
In future, provide a seamless upgrade path for users of Pastel's SME technology via AccountMate's midrange technology;
Provide an additional resource base with quality, cost effective research and development ("R&D") centres located in China and the Philippines; and
Give Softline access to an established brand and market position in the US market.
The consideration is to be settled 50:50 in cash and shares, involving the issue of 14 030 426 new Softline shares issued at R2.35 per share. The transaction has been approved by the South African Reserve Bank, and the Rand value of cash paid amounts to R33 128 500. Softline has completed a financial and technical due diligence, and there is no deferred consideration payable.
AccountMate was previously owned by a group of private individuals, including the founders Dennis Lo and Ben Tse, the Vice President of Development and the President & CEO of AccountMate respectively. Lo and Tse are contracted together with other senior management to remain with AccountMate for an extended period of time following completion of the transaction.
Since inception in 1984, AccountMate has achieved a key profile as well as earned an excellent reputation in the US software industry for the development of leading edge accounting software solutions designed for the midrange accounting software market. AccountMate has more than 15 000 registered users and 120 000 installations since inception, including a number of high profile companies such as The Magic Johnson Foundation, Citicorp, Exxon, MGM, McDonalds, Johnson & Johnson, the Smithsonian Institute, Sarah lee Direct, Holiday Inn and the United Way Agency. The business is headquartered in Novato, San Francisco, California, and has research & development centres in the USA, China and the Philippines.
A- - - - ccountMate's net assets and profits are not material in relation to Softline's consolidated position, and the impact on net asset value per share and earnings per share is likewise not expected to be material.
Softline chief executive officer, Ivan Epstein, commented: "The acquisition is a further step for Softline, as it enhances our international position in the accounting software arena, expanding our user base, adding to our product range and providing a solid footprint in the USA. It also moves us closer towards our stated objective of becoming a significant global player in the SME and midrange accounting market. We are now clearly a leading vendor in South Africa, Australia, Canada and among the leading vendors in the USA".
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