- Software company Cape Range is set to expand its product range after purchasing a Malaysian company for $315,000
- The Malaysian company, Xtreme was bought by Cape Range’s subsidiary Biztrak to combine the two companies and reach a large audience
- Cape Range and Biztrak will then form a logistics management joint venture
- Cape Range’s share price is steady in today’s trade with shares going for 90 cents apiece
Software company Cape Range is set to expand its product range after purchasing a Malaysian company for $315,000.
The company, Xtreme Software, has provided its software solutions and services to small and medium businesses for many years.
The company has developed the use of technology to simplify business processes which result in increased efficiency.
It was announced that Cape Range’s subsidiary Biztrak Business Solutions, had executed a sale and purchase agreement for the purchase of Xtreme’s windows-based logistics warehouse management system.
This purchase means that Biztrak will obtain Xtreme’s proprietary software which it then plans to upgrade and combine with its own accounting package.
Once finished, the combined software solution will allow Biztrak to market and sell a fully integrated warehouse management and logistics software package into the growing logistics market.
In addition to this, Cape Range has been engaged by Hong-Kong based company GM Limited to develop a cloud-based warehouse management software application for $670,000.
Out of this $140,000 has already been received with the payments to be made by GM in instalments. The final instalment of $70,000 will be received upon completion in December 2019.
A significant portion of the technology obtained from Xtreme’s windows-based software will be incorporated into the cloud-based software.
The development of the cloud-based software coincides with the increasing demand for software that provides real-time access to view and manage inventory data via a website.
The web portal enables users to access data virtually from any device or web browser.
Looking into the future Cape Range intends to form a joint venture with GM Limited.
Biztrak and GM have agreed to eventually form a joint venture where a newly formed Malaysian company will be established to acquire to new software from Biztrak in exchange for a 51 per cent interest in the joint venture company.
The company will then obtain the remaining 49 per cent equity interest in exchange for the cloud-based management system.
Once the joint venture has been established, the parties intend to market, promote, distribute and sell the logistics software to the rapidly expanding software solutions market.
Cape Range’s share price is steady today with shares trading for 90 cents apiece at 2:28 pm AEDT.