Aggressive Commsoft launches buying plan

Listed technology stock Commsoft's $7.5 million acquisition of Auckland company Marketing Technologies, is the first move in an aggressive strategy for the next couple of years.

Marketing Technologies developed a software product called Brains Customer Relationship Management.

Auckland-based Commsoft has offices in Sydney and Melbourne and will pay $3 million in cash and issue shares worth $500,000 at $A1.10 ($1.38) per share on settlement. A further $500,000 of shares will be issued after 12 months at the greater of the prevailing market price or $A1.10 per share. On the first anniversary after settlement, CommSoft will issue further shares worth $750,000 if revenue targets are attained and on the second anniversary an additional $1 million worth of shares if further revenue targets are achieved.

Commsoft was spun out of Strathmore Group last year. Its shares yesterday were unchanged from Friday's 122c price.

- NZPA