Continuing its strategy to build a global mid-range accounting software brand, the Softline group has made another offshore acquisition.
The group has purchased California-based accounting software developer Datafaction for an amount in excess of R32 million, payable in cash and shares and subject to profit warranties.
Datafaction has a broad range of customers but its accounting software is particularly dominant in the US entertainment industry.
"Our international operating policy over the past year has been to invest through our 60% Amex-listed subsidiary SVI Holdings which has clearly defined its focus on the development and implementation of enterprise-wide retail-management systems," says Softline CEO Ivan Epstein.
"Going forward, Softline`s focus is on continuing to strengthen our presence in and become a global player in the mid-range accounting software market.
"Coupled with our recent purchase of leading Australian software developer Sybiz Software, the Datafaction transaction will play a significant part in synergising Softline`s worldwide customer base as well as its R&D capability."
The group currently has a total of 150 000 users spread between South Africa, the US, UK, Australia, Singapore and Malaysia.
Founded in 1976, Datafaction, based in Los Angeles, California, has established a dominant position in providing accounting software applications, with a strong focus in the entertainment industry.
Prominent among the client base are leading accounting firms such as Ernst &Young and Deloitte and Touche, servicing multiple clients in Hollywood.
In addition to its strong position in the entertainment industry, another vertical market holding great potential is sports management where Datafaction includes the world`s largest exponent in this industry among its clients.
Datafaction`s credentials fit all Softline`s stated primary investment criteria, including the development of proprietary technology which generates high margin, recurring revenue from its growing installed customer base.
Datafaction is well established in a number of leading accounting firms in the US which will provide a solid platform for Softline to grow the group`s global brand of accounting software as it seeks to penetrate markets internationally.
"As electronic commerce develops at the accelerated rate expected by industry experts, a number of opportunities will open for Softline, with our large and growing customer base around the world." says Epstein.
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