Enprise Software has announced that it acquired online billing and reporting service provider, Datagate Innovation Limited. Though the deal was finalized in the previous month, the official statement from Enprise Software came out this week. However, the monetary value of the acquisition has not been kept under cover.
Datagate Innovation added up to Enprise Group as third operating division. The other two existing divisions are Enprise Software and Enprise Solutions.
As reported by Datagate Innovation, the New Zealand based company became 100% subsidiary from 1st April 2014. It has also been confirmed that no structural changes will be carried in Datagate Innovation after this acquisition. The entire staff, the products and patterns of operations will remain the same. However, it is up to the executive management of Datagate if they want the company to undergo significant reforms. The major reason behind this acquisition was Datagate’s intensive involvement in cloud computing, as it provides a low-cost, secure and fully managed cloud platform for distributors, resellers and their customers.
Tim Mulcock will Continue to Lead Datagate Innovation
Tim Mulcock is the founder and ex-CEO of Datagate Innovation Limited. The CEO of Enprise Group, Mark Loveys has clarified that Tim Mulcock will remain the head of Datagate Innovation. Tim has also become a significant shareholder of the overall Enprise Group. The decision was taken considering the past relations between Tim and Enprise. In 2006, Enprise Software bought a global cloud control panel, EMS Cortex, which was co-founded by Tim Mulcock. However, the company was later resold to Citrix Corporation in 2011. Described reason for retaining Tim Mulcock as the head of Datagate is his expertise and knowledge that can help the business unit to flourish more.
How Datagate Innovation will Leverage from this Acquisition
Although Datagate Innovation Limited is the most acclaimed service provider in billing and reporting for telecommunication firms, utility companies and hosted service providers, it is low in size and resources. Depending on retained earnings for further research and development would take quite a while in reaching the set benchmarks. On the other hand, Enprise is a massive corporation, registered with National Stock Exchange of Australia (NSX). Datagate will have the opportunity to not only utilize the high resources of Enprise but also its international contacts within hosting industry.
Enprise Software Continues Investing in Cloud
Enprise Software can foresee the growth opportunities in cloud business and is therefore spending more in this sector. In august last year, Enprise acquired a non-controlling interest in AccountAbility Access Pty Ltd, a Melbourne based Cloud Software Company. Prior to that, the group invested in 2Cloud, a New Zealand based cloud hosting company. With such expansions, Enprise Group aims to compete with the leading cloud providers in Australia like Dimension Data.
Enprise Software is SAP’s Gold Partner in software solutions that increase the power and functionality of SAP Business One. The latest acquisition will support the new products and services for 2014, announced by the CEO himself.