By Mark Reynolds
Advantage Group expects to double its turnover following the purchase of PEC New Zealand's oil industry computer software operations.
Advantage will pay $15 million for the part of PEC's information technology business that writes computer programmes used by companies like Shell, BP and Caltex in their retail operations. The PEC software allows oil companies to track stock electronically and Advantage sees an opportunity to integrate those operations with its financial transaction software.
Advantage's main business is selling eftpos terminals, but it is rapidly expanding into writing software that allows companies to transfer information and funds electronically. The PEC business will add $28 million a year to Advantage's turnover next financial year.
Advantage chief executive Greg Cross said the acquisition had enormous strategic value because it complemented the company's existing electronic commerce operations and gave his company a presence in growing international markets like Australia and South Africa.
Advantage will pay $5 million for the business immediately, with $5 million to be paid in six months and the final $5 million in 12 months.
Advantage bought the PEC business from Hamilton-based Gallagher Group. Gallagher will retain a subsidiary of PEC that sells the Cardax building security system and will also keep PEC's fuel pump manufacturing business.
Oil software buy will give group advantage
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