Cirralto Ltd (ASX:CRO) has secured 100% of its long-term licensing partner, Perth-based software developer Appstablishment along with the Spenda business solution.
Shares in the ASX-listed transaction services business jumped as much as 10% today on the back of the news, rising to trade at 6.5 cents per share.
Thanks to the acquisition, Cirralto will secure a suite of propriety software and intellectual property (IP), including Appstablishment’s core product, the Spenda business payment platform.
Appstablishment vendors have received a combined 8.35 million Cirralto shares as consideration for the acquisition.
To accelerate Cirralto’s growth
Commenting on the acquisition, Cirralto CEO Adrian Floate said Appstablishment brought “skilled people, know-how, IP and an established customer base” to the ASX-lister’s table.
“This acquisition enables Cirralto to take the next step in its ambition to be a leading integrated payments provider.
“Cirralto has the technology to process payments and Appstablishment a platform for creating, sharing and integrating transactions between a buyer and seller.
“This union will enable Cirralto to accelerate its growth and solidify the company’s position as a unique feature-based payments company with a capacity to layer revenue from all players in the value chain.”
Appstablishment director David Wood echoed Floate’s sentiment and said he was excited the merger was complete.
The acquisition
Ultimately, the Appstablishment buy removes licensing fees and a series of overheads that previously existed between the ASX-lister and its licensing partner.
It also means that Cirralto is better positioned to offer its software as a service and payment services “at a very competitive market rate”.
Through the transaction, Cirralto also gains access to Appstablishment’s Spenda business solution - a family of products that facilitates a wide range of business payments.
The Spenda engine is cloud-based, meaning users can collate information from a wide range of accounts, debtors and creditors on one platform.
As Appstablishment’s flagship platform, Spenda’s product suite includes software that supports point of sale, inventory management, debt collection, payment services, eCommerce and catalogue sharing.
The Spenda solution will fuse with Cirralto’s existing payment technology to evolve and expand its customer offering.
"Considerable synergies"
Cirralto chairman Peter Richards said “From early on in my involvement with these two companies, it was obvious there were considerable synergies to be extracted from bringing together two dedicated and talented groups of employees to focus on delivering an integrated payments solution to business to business and business to consumer vertical customers.
“I would like to thank all our employees who have tirelessly worked towards this outcome and are now able to focus on delivering excellent customer outcomes.”