SaaS vendor ReadyTech acquires Open Office for $72 million
ReadyTech, a Software-as-a-service vendor based in New South Wales has announced its plan to buy Open Office, a Melbourne-based government software expert. As a part of this deal, the ASX-listed ReadyTech will pay $54 million upfront to Open Office and an earn-out of $18 million for its key business partner, McGirr Technologies.
Software company ReadyTech says this deal represents their entry into the “state and local government and justice sectors”, which sits besides its present customer base of payroll and education companies.
ReadyTech acquires Open Office
The SaaS provider said in a statement that the strategy of Readytech is to offer mission critical Software-as-a-Service to targeted markets so that they can leverage modern tech platforms, all supported by its best practices approach to deliver customer-centred software.
Their strategy also focuses on recognizing additional technologies to broaden its reach into various market verticals to continue its track record of successfully expanding into new markets.
The fund these deals, ReadyTech has initiated a share purchase plan with the goal of raising $4 million. If the proposal of buying Open Office does not fall into place, ReadyTech plans on using the capital raised to fund other growth and M&A opportunities.
The announcement by ReadyTech to acquire Open Office comes after the software vendor listed on the Australian Securities Exchange with $120.8 million market capitalization and an IPO of $50 million.
About ReadyTech – a SaaS vendor
NSW-based ReadyTech is a leading provider of people management software for employers, educators and facilitators. They have cutting-edge software for payroll and HR admin, student management, work and health safety, apprenticeship management, employment services as well as behavioral science technology.
The company was founded over 2 decades ago and was originally named JobReady. The company had launched its first software product in 1999 and had about 150 people working at the time of its IPO.
Open Office was established in 1990 and offered integrated cloud enterprise solutions for government bodies. In 2019, it was acquired by Pemba and was stitched up with Pemba-backed McGirr in Feb 2020.
For more updates and latest tech news, keep reading iTMunch
Image Courtesy: Business photo created by jannoon028 – www.freepik.com