Entry for STT list. FRR-FRR Corporation SP-1.9C Market cap post acquisition of Newlease aprox 34mill. FRR Corporation has positioned itself to acquire Melbourne-based Newlease, a cloud centric software and service provider with sales and support offices in Sydney, Auckland, Singapore, Bangkok and Manila.
Recent microcap stocks acquiring technology businesses have been market stars with the technology sector running hot on the Australian and U.S. markets.
FRR Corporation has signed a share sale and purchase deed, which is subject to shareholder approval and certain conditions precedent - to acquire 100% of Newlease.
Consideration for the deal will be by the issue of FRR Corporation shares valued at $13.5 million. FRR plus Newlease will have net cash of $2.5 million post transaction.
Newlease has recorded 5 year compound revenue growth of 47% p.a. from monthly subscription software license revenue streams in the Australian, New Zealand and more recently Asian Pacific markets.
The new ownership structure will enable Newlease to take advantage of the opportunities that are presenting themselves to grow further in both product and geographical reach. Asian expansion has seen higher Capex but subscription software should quickly flow through to the bottom line. Will have a consolidation at some stage but in the right sector and still looks value IMO.
