West Perth-based asset and expense management provider Stratatel Ltd has acquired Phoneware Communications Systems Pty Ltd for $2.5 million in cash and shares.
Statatel will pay $1.8 million cash and $300,000 worth of shares in the company at settlement, plus up to $400,000 cash in 12 months, of which $200,000 is subject to specific client retention.
The deal is subject to shareholder approval for a capital raising and other specific conditions.
Stratatel Ltd managing director Mike Fairclough said the deal was in line with its strategic direction of pursuing acquisitions that had a similar business model to Stratatel, with solid recurrent revenue and scope for domestic and international growth.
Phoneware, a subsidiary of Sirius Corporation, has offices in Sydney and Melbourne.
"The Phoneware business is a well known provider of telecommunications management solutions and fits our objective of being the leading provider of asset and expense management and cost recovery solutions. Stratatel can assure Phoneware customers of an ongoing high standard of service and the ongoing development of feature rich solutions," he said.
"This acquisition adds significantly to our base of recurrent revenue and takes our total number of corporate and government clients to approximately 1,500 providing excellent cross selling and marketing opportunities for further revenue and earnings uplift."
Sirius Corporation managing director Frank Licciardello said the Phoneware brand, products and services continued to be acknowledged in the market as leaders in the telecom expense management field.
Phoneware is expected to be earnings per share accretive in its first full year under Stratatel ownership.
Having posted a strong half year pre-tax profit to 31/12/07 of $347,000- the company expects to substantially increase revenue and earnings growth in 2008 and beyond.
