- Following shareholder approval, ReadyTech (RDY) has officially acquired Open Office, a leading government and justice case management solutions provider
- The company paid an upfront consideration of $54 million alongside an earn-out consideration of up to $26 million
- The acquisition aligns with ReadyTech’s strategy of providing software solutions to new markets, including the government and justice sectors
- Open Office is also expected to contribute about $4.3 million in revenue for FY21
- Additionally, ReadyTech is launching a share purchase plan to raise about $4 million
- Eligible shareholders may subscribe for up to $10,000 worth of ReadyTech shares between March 25 and April 12
- ReadyTech ended the day 2.05 per cent in the red to close at $1.67
ReadyTech (RDY) has completed the acquisition of Open Office and McGirr, an international government and justice case management solutions provider.
ReadyTech paid an upfront consideration of $54 million alongside an earn-out consideration of up to $26 million to acquire Open Office and McGirr, collectively known as Open Office.
The completion of the acquisition follows shareholders giving their tick of approval at ReadyTech’s extraordinary general meeting that was held on Friday, March 19.
“We’re delighted to welcome the Open Office team to ReadyTech, and are excited by the growth potential we see for our expanded software-as-a-service (SaaS) businesses,” ReadyTech Co-founder and CEO Marc Washbourne said.
ReadyTech acquired Open Office as it aligned with its strategy to provide SaaS solutions to different markets, which now includes the government and justice sectors.
The acquisition is also expected to deliver pleasing and consistent revenue streams.
ReadyTech expects Open Office will contribute about $4.3 million in revenue for FY21 as well as an earnings before interest, taxes, depreciation and amortisation in the range of mid-to-high 30 per cent.
“This is an exciting new chapter for us, as ReadyTech’s proven capability will
assist in driving deeper connections with an industry that has strong barriers to entry, leveraging the robust, long‐term relationships we already have with our customers,” Open Office Managing Director Phillip Simone said.
Additionally, last year ReadyTech announced its intention to launch a share purchase plan (SPP) if and when the acquisition was completed.
The SPP will now go ahead and will allow eligible shareholders to subscribe for up to $10,000 worth of ReadyTech shares. The company is aiming to raise $4 million, but it may decide to accept more or scale back applications.
The SPP is expected to open on March 25 and close on April 12, 2021.
ReadyTech ended the day 2.05 per cent in the red to close at $1.67.