The deal, worth £2.22 per share, or around £9.5m, is reliant on a 90% shareholder vote, which should go through before Christmas. For its money, CODA will gain 250 customers in the UK and Europe, which adds up to a whopping £38,000 per client.
‘There won’t be any redundancies in CODA, and SquareSum is looking into what action it will take,’ said Roche. But when asked whether there would be any redundancies at SquareSum, he said: ‘Possibly, but I donåt think it will be a huge number.’
According to Dennis Keeling, CE of the Business Application Software Developers Association, the deal makes perfect sense. Describing the acquisition as ‘an excellent move’, he said: ‘They sit together very well. Very similar architectures, very similar staff levels, in fact a lot of the SquareSum people are ex-CODA. It broadens CODA’s market. It means they will not only operate at the higher end but the smaller end too with products that are very compatible with each other.’
Announcement of the deal came as Simon Edwards, director of Microsoft Business Solutions in the UK, told Accountancy Age the release of Microsoft CRM – the first real product in its .Net framework – has been put back until ‘Q3 next year’.
Roche said the acquisition would put the company into a market leading position and that he expects the deal to go through within a matter of months. ‘We’ll be looking to complete the transaction for the beginning of the new year,’ said Roche.He went on to say current customers would not be affected by the move. âThe CODA Financials product wonåt be affected, and nor will the DREAM product,å said Roche. âWe wonåt be looking at moving customers around.å
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