Lasata snapped up by UK player

UK-BASED Systems Union has acquired Western Australian business intelligence software developer Lasata Software in a deal worth about $28 million.

Systems Union will pay £9 million ($23.4 million) in cash and issue 1.5 million shares to Lasata’s directors Tony Farrell and Steve Wall.

Of the cash component, £8.2 million ($21.3 million) will be paid by August 31 this year with the remainder to be paid by January 2005.

Lasata was established by Mr Farrell and Mr Wall in Perth 14 years ago and has since established offices in London and Vancouver.

As part of the deal Mr Farrell and Mr Wall, who are based in Perth, will join Systems Union’s business intelligence executive management team.

Mr Wall said the takeover would allow Lasata to grow its product range.

“Becoming an operating business within the Systems Union group gives us the opportunity to upscale our product set and take advantage of the benefits a large, successful group brings,” he said.

“The independence of the business intelligence division will allow us to continue to develop management reporting solutions that move companies away from simple financial reporting to business intelligence.”

Mr Farrell said there was the potential to grow Lasata’s research and development capabilities in Perth.

“It’s business as usual, however, we’re just getting more international access to products,” he said.

“Systems Union do R&D in Europe and China and we believe that there is a good opportunity to increase the amount of R&D that comes out of Perth.”

The acquisition is subject to final due diligence, which Systems Union expects to complete by June 30.

Lasata already supplies Systems Union with analytical tools, which are integrated into System Union’s SunSystems and Pegasus software products.

Lasata will be merged into Systems Union’s Business Intelligence Division.

In a statement to the London Stock Exchange, Systems Union says Lasata is an important supplier.

“It provides analytical tools, which are fully integrated into the group’s key financial SunSystems and Pegasus software products. Lasata’s applications provide real-time data access and drill down functionality when generating reports for business users,” the statement says.