Strathmore Increases Stake In CommSoft
FOR IMMEDIATE RELEASE
Strathmore Increases Stake In CommSoft With $2 Million Injection
Acquires Additional 3.18%
AUCKLAND – 9 May 2000 – Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced it has paid $2 million dollars in cash as part of a pre-IPO round of funding to secure an additional 3.18% fully diluted interest in CommSoft Group Limited. This latest investment brings Strathmore’s stakeholding in the company to 38% and values CommSoft at over $60 million.
Strathmore Chairman, Phil Norman said CommSoft’s revenues and market share were growing more rapidly than forecast and that this had created strong interest from a number of institutions prepared to inject additional working capital to drive growth. “CommSoft’s success has been driven by strong market share and sales channels in New Zealand, Australia, the UK and South Africa. Its international presence, strong management team and established CMS and CRM software have made it an attractive prospect for investors looking to invest in a growth company in a growth industry,” says Norman. “Despite strong interest from other institutions to fund its expansion plans, CommSoft was keen to maintain the momentum of its existing relationship with Strathmore and looked to us to provide additional capital.”
“This latest investment fits with our ongoing strategy of allocating working capital to businesses that are meeting performance objectives for return on investment and market leadership in terms of cost competitiveness, technological strength and profitable growth.”
Geoff Wilding, CEO of CommSoft, said the company had experienced significant growth in the past year and Strathmore had demonstrated strong support by adjusting its funding in accordance with updated cash forecasts that reflected the higher costs and working capital requirements associated with this growth. “We have enjoyed a positive relationship with Strathmore over the past five months. This latest investment reflects the respect both organisations have for the management and operations of each other. We look forward to enhancing this relationship in the future by taking advantage of Strathmore’s financial strength, management expertise and global network.”
Commenting on recent marketplace speculation regarding a possible stockmarket listing by the company, Wilding said CommSoft is currently considering options related to raising further capital, one of which included a listing on the Australian Stock Exchange (ASX). “Warburg Dillon Read has been retained by the company to advise on capital raising alternatives. However at this time, we cannot comment on the form or timing of any future capital raising or whether or not the company will list on the ASX.”
About CommSoft Group Limited
CommSoft Group Limited is an international leader in the development of niche software products for the telecommunications industry. The company has grown rapidly since its establishment in 1998, with offices in New Zealand, Australia, Singapore, South Africa and the UK.
CommSoft develops and markets leading edge telecommunications software to help small to medium enterprises make better use of their telecommunications equipment through better cost management, increased staff productivity and improved customer service. Its products are sold by some of the world largest telecommunications suppliers.
More information on CommSoft is available on the web at www.commsoftgroup.com
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 million of shareholders’ funds. It targets Internet, e-Commerce and information technology companies with potential to deliver accelerated growth in shareholder value by competing in global markets. It provides strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.