This year's stream of tech companies being sold offshore continues.
Auckland legal-tech start-up Sortify has been bought by ASX-listed QANTM Intellectual Property in an A$8 million deal that could rise to A$11m ($11.1m) with earn-outs, according to an ASX filing by QANTM.
It's the latest in a flurry of offshore tech sales this year, which has included robotics-specialist Rocos' sale to a US firm, the $100m+ sale of EzyVet, plus the sale of Vend ($455m), Timely ($135m), Seequent ($1.45b), Ninja Kiwi ($203m), Education Perfect (in a majority-control deal valuing the firm at $455m) and the $500m Hawaiki Cable (a deal now in front of the Overseas Investment Office), while December saw the sale of local retail hero Mighty Ape to Australia's Kogan for $128m.
Sortify was founded in 2017 by trade mark lawyers Claire Foggo (CEO), Alan Potter (head of product development) and Narly Kalupahana (a director).
Each of the three founders had a 21 per cent stake ahead of the QANTM buyout, according to Companies Office records.
Smaller investors included Sir Stephen Tindall's ubiquitous K1W1.
Sortify, which describes itself as "born out of boutique intellectual property law firm Potter IP" says its software automates the entire trademarking process so that "brand owners can enjoy real-time assisted trade mark filing, with or without specialist trade mark knowledge", even if they're after IP protection in multiple jurisdictions.
Foggo says it makes trade mark protection available to everyone through a DIY online process.
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Advertise with NZME.Although ownership is moving across the ditch, the CEO says the local operation will expand.
"We have a team of 12 all based here, and the deal sees all staff, operations and further R&D remaining in New Zealand," Foggo told the Herald.
"It's really great news from our point of view as QANTM's support will give us the ability to expand and strengthen our awesome dev team here in NZ."
Foggo did not disclose financials but said Sortify had clients in New Zealand, Australia, the US, the UK, Singapore and Canada.
In an investor presentation, QANTM said the deal would "likely be earnings accretive within 12 months". It would help the Australian firm modernise its systems, and assist Asia-Pacific expansion.
QANTM, which has a market cap of A$158m, made a net profit of A$9.5m on revenue of A$115m in the year to June 30.
Foggo says the Aussies made the first approach, after hearing good word-of-mouth about her startup.
Legal tech has proved a hot area in 2021.
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Advertise with NZME.Last month, Tauranga startup LawVu - which makes software for in-house legal teams to automate process like creating contracts - raised $17m for further expansion into the US, where it already numbers a giant social media platform among its clients.
And Auckland's Two Bees recently launched a litigation costs calculator designed to automate a half-hour process.
