NZ Post chases Infolink shares

By RICHARD WOOD

New Zealand Post has increased its shareholding of local workflow system vendor Infolink Group from 60 to 95 per cent.

It bought the shares for an undisclosed price from founder Larry Hill and is negotiating with shareholders Tom and Fran Sager for the rest.

Post intends to merge Infolink with its messaging systems subsidiary Electronic Commerce Network (ECN). Post reportedly spent $1.8 million to buy into Infolink in 2000 and had about 40 per cent ownership last month.

Hill has vacated the CEO position, and sales and marketing manager Phill Dagger is acting CEO until the merger is complete.

Hill, still at Infolink part time, said recent months had been very profitable, but the firm needed the clout of a big company like Post.

ECN leader Ross Baker said the firms had complementary offerings and could exploit each other's client bases.

Infolink's web-based workflow systems ensure paperless processes are followed, and in the correct sequence. ECN's messaging systems let companies communicate electronically regardless of differing formats and accounting systems.

ECN has 23 staff, Infolink 20. Baker said no redundancies were planned. ECN has a 53 per cent share in Australian firm Tedis which has 17 staff.