09/10/2009 - 11:25

Webspy to acquire Marketboomer for $4.8m

09/10/2009 - 11:25

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Software developer Websby is set to broaden its horizons after unveiling a proposed acquisition of an internet-based procurement and materials management business in a $4.8 million scrip deal.

Webspy to acquire Marketboomer for $4.8m

Software developer Websby is set to broaden its horizons after unveiling a proposed acquisition of an internet-based procurement and materials management business in a $4.8 million scrip deal.

The West Perth-based Webspy expects to significantly boost its cashflow, revenue and generate profitable operations for this financial year with the acquisition of the Martketboomer group of companies, Marketboomer Pty Ltd and Ortas Enterprises Enterprises Ltd.

The group provides its clients, predominately in the hospitality and food services businesses, with an internet-based solution to trading more effectively with suppliers.

On the Marketboomer website, the group said it had more than 9,000 hotels on its register that could potentially use the software.

The Sydney-headquarter Marketboomer has launched the businesses in 10 countries so far including North America, Europe and Asia.

Under the acquisition agreement, Webspy will offer 115 million fully paid shares and 361.6 million deferred shares, which will be released at various intervals.

Webspy said about 92 per cent of the shares issued to Marketboomer will be escrowed.

Webspy said the acquisition will be a natural fit with both entities' products B2B and based around internet and large data manipulation with high transaction levels.

"The acquisition has the potential to generate a substantially higher level of earnings and cash flow for Webspy from the operations of the Marketboomer business as well as improve net assets of Webspy," the company said.

"This advantage will improve Webspy's financing capacity to fund future expansion and new business."

As part of the acquisition, Webspy will also appoint Marketboomer's Declan Monahan and Kim Redstall as directors.

The acquisition is subject to shareholder approval.

Shares in Webspy were still in a trading halt, having last traded at 1.6 cents.

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