Enprise Group Limited has acquired a 47.09% equity stake in Australia's largest MYOB enterprise reseller, Kilimanjaro Consulting Pty Limited, for a $3,168,400 (NZD) payout.
The acquisition is an effort to bolster the New Zealand based company's growth in the Australian market, with Kilimanjaro having an established presence in the region.
Enprise Group chairman Lindsay Phillips will become a director of Kilimanjaro Consulting Pty Limited, with services agreements being executed between the companies in an effort to leverage their dominant positions in their respective geographic markets.
Enprise Group has granted a put option (option to sell off remaining assets) for the other 52.91% for $3,967,964 NZD, which is subject to approval at the annual general meeting to be held on 27th October 2017.
Kilimanjaro Consulting Pty Limited is the largest MYOB Exo and MYOB Advanced reseller in Australia with offices around the country, reporting a mid-year 2017 turnover of $9.1M AUD which included recurring revenue of $3.2M AUD.
Elliot Cooper, Enprise Group CEO says the move reflects the company's strategy to be the leading reseller across the region in both MYOB Exo and MYOB Advanced.
“Enprise is already profitable and growing strongly, we achieved 65.3% revenue growth in the last financial year for our existing Australian operations,” he says.
“That was profitable growth, which contributed to a profit rise of 35.1% from continuing operations for the Group, the Kilimanjaro acquisition is expected to further accelerate that growth.
Enprise says the two companies have similar internal control processes and culture, asserting that their shared strategy will benefit clients by applying the best processes, procedures and systems from each organisation to create the most efficient delivery of services.
“Our customers will benefit from having access to a pool of more than 80 highly skilled and qualified consultants,” Cooper adds.
“(The) Enprise and Kilimanjaro teams already have a history of working constructively together on the delivery of selected customer projects, and this cooperation will be enhanced under the new services agreements.
Enprise Group signed the agreement on Friday 1 September 2017 for completion on 30 September 2017.