JCurve Solutions set to acquire the Full Circle Group

Australian cloud technology company, JCurve Solutions (JCS), has announced it will acquire telecoms management company, the Full Circle Group, after raising AU$2.5 million in a new share placement for investors.

The Australian-listed cloud solutions company said in a statement (PDF) that it had entered into a non-binding agreement with the Full Circle Group to acquire 100 percent of the cloud-based software and telecom consulting services company.

The deal is worth about AU$1.8 million, along with new issues of shares in JCS with a market value of AU$850,000. The move comes after JCS raised approximately AU$2.5 million in an oversubscribed placement of more than 50 million shares, at AU$0.05 each.

The company said it plans to accelerate its JCurve product's go-to-market strategy, which is the small business version of Netsuite's cloud accounting and enterprise resource planning software.

"JCurve Solutions has huge potential to attack the lucrative small business market with a quality product offering, designed specifically for small businesses, that enables simple and easy transition to a fully featured software system," said JCurve Solutions managing director, Graham Baillie, in a statement.

"The funding will let JCurve raise its profile and capitalise on the opportunities in the growing cloud small business software market.

"Adding another cloud recurrent revenue business in the mobility arena continues to build the solid foundation of JCurve Solutions as it ramps up for growth."

JCurve Solutions currently claims over 2,000 customers in Australia and New Zealand.

The Full Circle Group provides telco analytics for customers and claims that around 82 percent of its clients are Telstra customers.

For Chris Gabriel, director of JCS, the acquisition will bolsters and expand the company's cloud platform offering.

"The acquisition brings JCurve Solutions a leading cloud software platform, added management, sales and development capability," said Gabriel. "It also introduces a new range of consulting services including benchmarking, auditing and optimisation, proposal evaluation and tender management."

JCS reported a net loss for the six months ending December 2013 of AU$237,712, with a 10 percent rise in revenue to AU$5.15 million for the six-month period.

At the time of writing, the company's share price was at AU$0.057 each, up from a low last month of less than AU$0.036.