The $16.6 million deal will give SmartTrans access to a patented cloud logistics management platform
Technology firm SmartTrans has entered a new agreement to acquire cloud-based logistics software company Resource Connect.
The $16.6 million all-scrip acquisition will add Resource Connect and its patented iCuro cloud logistics management platform to SmartTrans’ supply chain management division.
Resource Connect’s supply chain offering is “highly complementary” to SmartTrans’ transport supply chain solutions and field services operations, the company says.
The combined entity will offer clients an outstanding suite of planning, management and tracking solutions.
The strong downstream horizontal integration created through the transaction will generate additional scale by allowing SmartTrans to cross-sell its offerings to Resource Connects’ customer base and vice-versa.
The acquisition deal proposes the issue of a total of approximately 2,778 million new SmartTrans shares in exchange for 100 per cent of the shares in each of Resource Connect and iCuro.
“Resource Connect is a highly complementary and strategic business that has rapidly established a strong market position across the resource, energy and construction industries,” SmartTrans chairman Mark Vaile AO says.
“Its cloud based technology platform and our Software as a Service (SaaS) capability has considerable potential across other industry sectors.”
Following the acquisition, it is proposed that three nominees from Resource Connect will join the SmartTrans Board of Directors.
“This acquisition gives both companies the ability to help new customers,” SmartTrans MD Brendan Mason says.
“Minimal business integration is required to realise acquisition benefits.”
Mason says Resource Connect MD Geoff Jamieson will “continue to lead the growth and development of Resource Connect and will take an active role in SmartTrans’ wider operations”.
“We have carefully assessed a number of avenues to grow Resource Connect and this merger with SmartTrans gives us the base to more fully capitalise on the large number of opportunities we have open to us,” Jamieson says.
“We are firmly of the view that Resource Connect is still in the early stages of its growth and have identified a number of new markets that have compelling growth prospects.
“The opportunity to tap into the Chinese market is also appealing.”
SmartTrans, which is chaired by former Australian trade minister Mark Vaile, has two divisions:
The first operates an e-commerce platform in China called RooLife that sells Australian products to consumers in China, and also offers a range of intellectual property and payments services for Australian companies looking to do business in China.
The other division is based in Australia, and offers a cloud-based Software-as-a-Service (SaaS) platform allowing businesses to manage their workforce from their smartphone.