Kilimanjaro Consulting Swaps Major Equity Stake with Enprise Group
Press Release from Monday, September 4, 2017
Kilimanjaro Consulting Pty Ltd, one of Australia’s most successful medium-sized business, has agreed to sell part of its business to the Enprise Group, a New Zealand based company.
In exchange, there has been a reciprocal scrip-for-scrip swap between Kilimanjaro Consulting Pty Ltd and Enprise Group.
Kilimanjaro Consulting Pty Ltd is the largest MYOB Exo and MYOB Advanced reseller in Australia with offices in North Sydney, Parramatta, Melbourne, Canberra and Perth. The 30 June 2017 turnover was $9.1M AUD, which included recurring revenue of $3.2M AUD.
“This deal has been a long time in coming to fruition,” Ronnie Baskind, managing director of Kilimanjaro Consulting, said. “We have worked our way through the complex legal issues, to arrive at an agreement that satisfies all parties, including MYOB.
“It is important to note that there is no change in management at Kilimanjaro Consulting and it will be business as usual.
“This is a real win-win arrangement, which allows us to achieve synergies from leveraging our dominant positions in our respective geographic markets.
“Both companies are already profitable and growing strongly. Leveraging off the synergies, we expect to be able to further accelerate that growth. We both have similar internal control processes and culture.
“The ability to plan together with full visibility of each other’s strategies will be of benefit to all clients. By applying the best processes, procedures and systems from each organisation, we will create the most efficient delivery of services.”
Listed on the New Zealand Stock Exchange Alternative Market (NZAX) on 1 December 2014, Enprise Group (ENS) has two operating divisions: Enprise Solutions and joint venture Datagate Innovation Ltd.
Enprise Solutions is a cloud-based business software company that is the leading trans-Tasman provider of solutions based on the MYOB Advanced and MYOB Exosoftware platforms.
Datagate Innovation provides online billing and reporting portals for resellers of telco, utility and other subscription services.
Enprise Group Limited has acquired a 47.09% equity stake in Kilimanjaro Consulting Pty Limited, for $3,168,400 NZD (comprising $1 million cash to be settled from surplus cash and existing facilities, and 1,560,000 ENS shares). Enprise Group chairman Lindsay Phillips will become a director of Kilimanjaro Consulting Pty Limited and services agreements have been executed between the companies to enable synergies from leveraging their dominant positions in their respective geographic markets.
Enprise Group Limited has granted a put option for the remaining 52.91% for $3,967,962 NZD (2,854,649 ENS Shares) subject to approval at the annual general meeting to be held on 27th October 2017. The option can be exercised between 1 September 2019 and 30 August 2020.
“This acquisition reflects that strategy,” Elliot Cooper, Enprise Group CEO, said. “Enprise is already profitable and growing strongly. We achieved 65.3% 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% from continuing operations for the Group. The Kilimanjaro acquisition is expected to further accelerate that growth.”
Both organisations have similar internal control processes and culture. The shared strategy of the two companies is to benefit clients by applying the best processes, procedures and systems from each organisation to create the most efficient delivery of services.
The acquisition will enable further specialisation with MYOB Advanced and therefore increase the addressable market for both companies, says Elliot Cooper.
Enprise Group and Kilimanjaro Consulting Pty Ltd signed the agreement at 4:10 pm on Friday 1 September 2017 for completion on 30 September 2017.
The announcement was made on the NZ Stock Exchange at 10:00 am this morning.
For further information please contact:
Kilimanjaro Consulting Pty Ltd
Level 4, 122 Walker Street
North Sydney NSW 2060
About Kilimanjaro Consulting
Kilimanjaro Consulting was formed to meet the growing demand for specialist services to plan and manage the implementation and support of business software. From modest beginnings, Kilimanjaro Consulting has become the premier implementer of MYOB Exo Business and Advanced software in Australia. MYOB Exo Business software has proven extremely popular with larger and growing businesses.
Kilimanjaro Consulting was created out of an accounting and management consulting practice. In 2002, on behalf of a client for Baskin Clarke Consulting, Ronnie Baskind investigated software to replace MYOB. MYOB Premier was no longer able to meet the growing needs of the client’s business. The choice was narrowed down to a few packages, one of them being Exo (formerly Exonet) which was fairly unknown software at that time. Following our recommendation, the client decided to implement MYOB Exo.