By FIONA ROTHERHAM
Advantage Group has paid $6.3 million for Auckland-based software development company Aldridge Punter.
The deal is subject to due diligence and contingent on Aldridge meeting expected revenue growth targets over the next three years.
Aldridge will continue to operate as a separate entity with Murray Aldridge remaining as managing director.
Clients of the 76-strong software development company include Air New Zealand, Carter Holt Harvey, and Auckland Healthcare.
Advantage chief executive Greg Cross said: "The company has a huge amount of expertise working with blue chip clients which we will be able to leverage across our business."
Mr Aldridge said the benefit Advantage brought to Aldridge was far greater capability.
"We're involved with database core system development while they're coming from the other way in.
"When organisations want their front-end web business linked with their core systems, it will work well."
New Zealand internet commerce revenue figures, as forecast by market research firm IDC in December, are tipped to rise from $US275 million ($539 million) this year to $US887 million ($1739 million) in 2002.
Business-to-business e-commerce is expected to be the biggest growth area within that.
Aldridge was founded back in 1976 by Dave Punter and Murray Aldridge.
Advantage will pay $2 million in new shares on settlement next month, then issue a further $1 million shares in the next two years and $2.3 million in March 2003. Each share issue will be made at the prevailing market price or in cash at Advantage's election.
Mr Aldridge said he was happy to be paid with Advantage shares, which have risen from just 20c in late 1998 to $4.70 at close yesterday.
Advantage pays in shares for software firm
AdvertisementAdvertise with NZME.