Advantage Extends Web Services Into Australia
Auckland – Friday 18 August, 2000 – Advantage Group Limited (NZSE: ADV) today announced it has agreed to purchase leading Australian web services company, Whitewolf online.
The agreement, which goes unconditional today, will see Advantage pay AUD$7.5m with a further AUD$1.5m on the achievement of AUD$2m EBITDA for the year ended 30 June 2001. AUD$0.937m will be paid in cash, with the balance in Advantage shares, predominantly issued at NZD$3.50 per share.
“Whitewolf is a quality asset with an established track record of earnings and profitability, a positive cashflow and a business base that extend our strategic capabilities,” says Advantage CEO, Greg Cross. “It fits our acquisition criteria at all points and will form the core of Advantage’s Sydney-based web services business, providing a beachhead that will enable Advantage to commence delivery of eServices into the Australian market. We are delighted to have acquired a business with a forecast EBITDA of $2 million for a purchase price of 4.5 times earnings.”
“Whitewolf brings with it significant partner relationships, depth of expertise and a top shelf client list,” adds Cross. “The company is extremely well-respected. Its Java skills and its experience with Sun and Oracle platforms fit well with Advantage’s expertise in Microsoft and Unix.”
The acquisition of Whitewolf will enable Advantage to expand its e-commerce revenue and customer bases and its geographical reach in line with the strategy outlined to the market last week.
“Joining Advantage will allow us to compete for and win larger projects and to extend our capabilities in other areas,” says Whitewolf Managing Director, Jonathon Wolfe. “There’s a great fit around the vision and aspirations of both companies. Becoming part of Advantage means we can extend our business plans based on a larger resource base in Australia and develop those relationships further across Asia Pacific. We will also look to deliver value back to our current clients through the additional solutions and expertise that Advantage has to offer.”
“Our alignment with Advantage means we can now scale rapidly to address the increasing number of large-scale opportunities in the Australasian market,” adds Wolfe. “This is a great opportunity for Whitewolf, our people and our customers.”
Jonathon Wolfe will continue as an employee of Whitewolf for a minimum term of two years from settlement. The agreement will become unconditional today, with settlement timed for 15 August 2000.
Whitewolf – Clients, Services, Partners and
Founded in 1984, Whitewolf is a leading Australian Web development company with a strategic business focus and high level of technical expertise that aims to enable effective knowledge management. Whitewolf’s reputation has been built on providing high-availability end-to-end online software solutions to leading Australian companies.
Its customers include Oracle Corporation Australia and Australasia, Fuji Xerox Australia, Hitachi Australia Ltd, Cable & Wireless Optus and the NSW Police Service: the company is listed as a Federal Government Endorsed Supplier and a preferred NSW Government Web Services Supplier. Whitewolf has entered into successful alliances with major Internet industry platform vendors. It is a member of the Oracle Partner Program, the BEA WebLogic Solution Partner Program, the Verity International Partner Program and is a Sun Development Partner.
Advantage Group Limited, an NZSE 40 company, is a leading supplier of eServices throughout the Asia Pacific region. Advantage employs over 400 full time people supporting customers in 15 international locations. For more information, visit http://www.advantagegroup.co.nz.