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Home / Business

Modica buy Run The Red from Pushpay for $4.5m

Francis Cook
By Francis Cook
Homepage Editor·NZ Herald·
15 Apr, 2016 05:04 AM2 mins to read

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It's the end of an era for Run The Red. Photo / Modica

It's the end of an era for Run The Red. Photo / Modica

Enterprise Messaging Services (EMS) are quickly replacing emails as the go-to communication tool in modern offices. The slow, clunky and often insecure method of team communication is no longer suited to companies and enterprises in the digital age of rapid decision making. Modica Group is advancing on this front by offering EMS solutions to business clients, and now plan to integrate the Kiwi-owned Run The Red.

Publicly listed Pushpay Holdings Limited (NZSX:PAY) sold the company for $4.5 million this month. In a release they said the acquisition enhances Modica Group's cloud based messaging platform with Run The Red's extensive experience in critical messaging solutions in New Zealand, Australia, Central America and the US.

All members of Run The Red's team have taken new positions at Modica Group, including the CEO Ben Northrop who has been named as Group Chief Marketing Officer.

For Northrop it's an exciting beginning and the end of an era, but the prospects of an integrated system are promising.

Northrop said he worked to make the company "sound sexy" and made great advances by bringing in 75% of New Zealand's banks, along with strong clients in Samoa and Fiji. The Dominican Republic is also "taking off," he said. Now he's looking state-side.

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"We're ready to ramp things up in the United States," he told the Herald.

Modica Group CEO Stuart Wilson said the purchase is a win for New Zealand: "With most New Zealand mobile messaging companies having sold out to Australian or International buyers, it is refreshing to be a part of a New Zealand led success story, and a story that doesn't end here."

"Already both companies have an international presence and are executing on high growth strategies. Now as one focused group, with over 30 years combined experience, we plan on redefining the global enterprise messaging market."

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The move heralds Modica Group as the largest New Zealand owned messaging service.

Discover more

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Faith bears fruit for startup duo

22 Apr 05:00 PM
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Pushpay director boosts stake

24 Jul 11:10 PM
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Pushpay maintains 2017 revenue

11 Oct 11:11 PM
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