Enprise Group has acquired a 47 percent stake in fellow MYOB partner Kilimanjaro Consulting for NZ$3.1 million (A$2.8 million).
The transaction comprises $1 million in cash and 1.5 million Enprise shares. Enprise also has the option to acquire Kilimanjaro's remaining shares for NZ$3.9 million, subject to approval at the company's next annual general meeting in October.
Kilimanjaro is the largest MYOB Exo and MYOB Advanced reseller in Australia, according to Enprise, and has offices in North Sydney, Parramatta, Melbourne, Canberra and Perth.
The company had an annual turnover of $9.1 million in the 2017 financial year, $3.2 million of which was recurring revenue.
Enprise is an MYOB partner headquartered in New Zealand with branches in Sydney and Melbourne. Chief executive Elliot Cooper said the company shares the ambition of becoming the largest MYOB Exo and Advanced reseller in the region.
“This acquisition reflects that strategy,” he said. “Enprise is already profitable and growing strongly. We achieved 65.3 percent revenue growth in the last financial year for our existing Australian operations.
"That was profitable growth, which contributed to a profit rise of 35.1 percent from continuing operations for the group. The Kilimanjaro acquisition is expected to further accelerate that growth.”
Cooper added that Enprise's customers will have access to more than 80 qualified consultants. Enprise chairman Lindsay Phillips will also become a director of Kilimanjaro as part of the transaction.
“Enprise will make its successful 'cloud the way you like it' service available to Kilimanjaro Consulting customers. This will better utilise the cloud skills and infrastructure resources already deployed by Enprise," said Cooper.
“Enprise and Kilimanjaro teams already have a history of working constructively together on the delivery of selected customer projects. This cooperation will be enhanced under the new services agreements.”