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NZX-listed Finzsoft [NZX: FIN] has bought mobile app developer Sush Mobile in a deal valuing the company up to $1.9 million.
Sush co-owners and co-founders Sheenu Chawla and Sulabh Sharma get $533,334 in cash now, the balance in cash and shares if earn-out targets are hit between now and March next year.
Sush Mobile has around 30 staff and has developed apps for clients including The Warehouse, KiwiBanks, Southern Cross and Unitech.
Finzsoft makes software for the financial services industry.
“Sush Mobile is a proven, successful and profitable mobile provider. The acquisition of Sush Mobile will provide a diversified income stream for Finzsoft along with access to comprehensive in-house enterprise mobility solutions that will give us a competitive, innovative edge, and a positive material impact both on revenue and bottom-line," says Finzsoft MD Andrew Holliday.
The two companies have previously partnered to develop Finzsoft’s Seal the Deal app and mobile banking apps that Finzsoft has sold into local building society and credit union clients, as well as St George Bank in Australia as part of the company’s latest material work orders.
CIO, Online and Mobility for Westpac Australia, Dhiren Kulkarni, who has been a Finzsoft customer since 2005, says the whole world is moving toward mobility and doing everything on the go, including anything to do with your bank – be it payment, service, quote or purchase.
“Currently 50 to 60% of our enquiries and payments come via mobile. This number is growing every day because a device is always to hand. With Finzsoft being a largely online system at this stage, the mobile offering is critical to Finzsoft and its customers,” says Mr Kulkarni.
The Sush Mobile deal comes just a month after Finzsoft announced the appointment of Gen-I’s Hugh McKellar to the position of Chief Operations Officer, and in a year that has seen strong profit growth following a change in leadership and the first material work orders from long-term client, St George Bank in Australia.