Aussies put $3m into Synergy growth plan

By ADAM GIFFORD

Information technology and management services consultancy Synergy International is to receive a $3 million cash injection from ANZ Private Equity

The funds have been earmarked by Synergy for the development of new products and services.

Synergy chief executive David Irving refused to say how big a shareholding the Melbourne-based fund was buying but it is believed to be more than 10 per cent.

The deal is subject to the approval of Synergy shareholders at a special meeting in Wellington next Monday.

Synergy is traded on the Stock Exchange's unlisted securities market.

Mr Irving said ANZ Private Equity had been helping Synergy to assess bids from other potential investors.

"We found we were building a better relationship with them than with the other potential cornerstone shareholders.

"We hadn't gone looking for capital, but we can find a home for this cash with more research and development and in building our infrastructure for growth."

He said that last year the company's staff numbers grew by 67 per cent and its revenue by 71 per cent to $16.7 million.

Revenue this year is projected to be "in the high $20 millions" from software development, management consulting, the provision of hosting and network services and from web development activities.

Synergy is involved in a joint venture with Ericsson to develop mobile internet applications. It has also bought the multimedia design business of the Wellington company Hyperactive.

Mr Irving said the purchase of Hyperactive was a similar deal to Synergy's purchase of Auckland web shop Agility two years ago. The move would add 15 staff to the company's Wellington operation and give it 230 staff across its Wellington, Auckland and Sydney offices.

Synergy's purchase is part of a growing trend for software developers to buy multimedia firms as a means of giving them access to people with specialist skills.

Hyperactive's clients include TranzRail, Mitre 10, Farmers Mutual and New Zealand Post, which is already a major Synergy client.

Other Synergy clients include Work and Income NZ, Enza, On Energy, AMP, Transpower, ACC, the Correspondence School, Deltec and all of the Government's central agencies.

The price that Synergy is paying to Hyperactive's former owner, the print firm Commercial Arts, has not been disclosed.