Sydney HR and payroll SaaS vendor Elmo Software has acquired a major stake in Melbourne-based software development house Hero Brands.
Elmo acquired a 50 percent equity ownership stake in Hero Brands in exchange for a $1.18 million capital injection, plus an additional $500,000 upon meeting performance criteria.
In an ASX announcement (pdf) released today, Elmo said the investment expands its research and development capability while also gaining access to “high calibre” software engineers.
“We are delighted to invest and partner with Hero Brands. I have previously worked with the vendor and know them well,” Elmo chief executive Danny Lessem said.
“Expanding our development capacity and capability will assist in delivering our long-term growth strategy.”
Headquartered in Melbourne, Hero Brands also has operations in Eastern Europe. The company's revenue hit $3 million last year.