gen-i generates expansion plans

By ADAM GIFFORD

Entrepreneur Eric Watson's Cullen Investments says it cannot keep up with the growth of one of its most successful assets - systems integrator gen-i - and is looking for an investor partner.

IT industry sources say two firms, including Australian IT company Solution 6, are looking at gen-i's books.

A Solution 6 spokeswoman cited company policy of not discussing takeovers, but Simon Clatworthy, a Cullen Investments executive and member of the gen-i board, did not deny that a sale was on the cards.

But he said the plan was still to floatthe company on the Australian Stock Exchange in 18 months to two years.

Last year's turnover for gen-i was $115 million. This year's is expected to be between $135 million and $140 million.

Mr Clatworthy said that to expand aggressively into Australia, as it intended to do after winning an Air NZ-Ansett outsourcing contract, the company needed to grow.

He said gen-i had identified companies with which it would like to be linked. If gen-i was to buy another company, it would probably be another system integrator.

Solution 6 has renamed companies in its group. Auckland-based accounting and e-business software firm exo-net is now known as exo-net 6.

The exception is Iguana2, a Sydney-based sharemarket information service provider, which was originally a New Zealand firm. Solution 6 bought it in 1999 for $A1.4 million ($1.72 million), but sold 20 per cent back to management in March.

Last week, Iguana2 bought NZ sharemarket information website ShareChat. Iguana2's chief operating officer, Adam Rands, said it would launch new applications and wanted access to ShareChat's user base. It would also use ShareChat's team to launch a similar Australian site.

Links

ShareChat

Solution 6