- Cirralto (CRO) will acquire 100 per cent of Appstablishment Software Group
- Appstablishment is a Software-as-a-Service company that develops software products for businesses to collaborate efficiently
- The acquisition complements Cirralto's current technology and gives it ownership of key IP globally
- Cirralto will gain an additional annual recurring revenue of roughly $500,000 and will be opened up to 15,000 businesses
- Cirralto is up 14.3 per cent today with shares trading for 0.8 cents each
Cirralto (CRO) has announced, through a binding share sale agreement, it will acquire 100 per cent of Appstablishment Software Group.
Appstablishment is a Software-as-a-Service (SaaS) company that develops software products for businesses to efficiently collaborate.
Its SYNK'D platform, along with its business management application, Spenda, provides a complete solution which brings substantial productivity and costs savings to customers.
SYNK'D synchronises financial and operational data between financial accounting platforms such as Pronto, NetSuite, XERO, MYOB Account Right Live and QuickBooks.
Spenda allows for simple collaboration and trading between small and large business-to-business customers as well as a point of sale platform.
Where these platforms align is when SYNK'D integrates each transaction in the Spenda platform into financial systems to make accounting and compliance fast and accurate.
Appstablishment's customers usually include small to medium enterprise retailers, wholesale distributors and manufacturers.
Additionally, among its current customers is a major co-op member group that is the market leader in the automotive industry across Australia and New Zealand, and a major distributor of dairy products.
Its technology suite is deployed across over 15,000 businesses which will provide a gateway to the market for Cirralto and will also bring it an additional annual recurring revenue of roughly $500,000.
This acquisition is considered a "transformative milestone" for Cirralto in grabbing an established software development house.
"The integration of Appstablishment’s proven SaaS product offering, technology capability and existing customer base, combined with the company’s data migration software will bring an exceptional development team in-house and provide clarity and focus to drive the company to the next level of performance," Cirralto Chairman Peter Richards said.
This paves the way for Cirralto to benefit from owning commercial IP and will give it access to the Australian Government's research and development tax incentive scheme.
Once the acquisition has been complete, Cirralto will continue to focus on the roll-out of its SaaS solutions and the fast-moving consumables goods, upscaling by adding more end users within the network and providing them with new functional modules.
Cirralto is up 14.3 per cent today with shares trading for 0.8 cents each at 2:22 pm AEDT.