AU$315m Mincom buyout on the cards

AU$315m Mincom buyout on the cards

Summary: update Mincom may soon have a new owner, with private equity fund Francisco Partners looking to buy the Queensland-based software development and services outfit for AU$315 million in cash.Mincom claims some 1,200 staff in offices around the world, with a substantial amount of its revenue coming from the mining industry.

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update Mincom may soon have a new owner, with private equity fund Francisco Partners looking to buy the Queensland-based software development and services outfit for AU$315 million in cash.

Mincom claims some 1,200 staff in offices around the world, with a substantial amount of its revenue coming from the mining industry. It also caters to the defence, transport, utilities and public sectors.

For example, some of its local customers include the Department of Defence, Oxiana, Transgrid, Ergon Energy, Energex, Anglo Coal and Xstrata.

In a statement issued this afternoon, Mincom's board said it supported the acquisition, which has been undergoing due diligence since Francisco Partners approached Mincom late last year.

"We've committed to all of our customers and everybody else that head office will remain in Australia, all our office locations around the world will remain in place.

"No change in headcount, management team will stay, no change in direction for product or services. So absolutely business as normal, it's only a change in the share register, nothing more," Mincom chief executive Richard Mathews told ZDNet Australia in a telephone interview.

Mincom notified customers of the move this morning, with Mathews speaking personally to key customers.

The CEO claimed the news had received a warm welcome among customers.

"Very positive," he said. "I guess the only criticism that Mincom ever had over the years has been what its long-term position was going forward. And I guess this kills that question once and for all."

"There's no question about our financial viability, there's no question about our ability to grow, there's no questions about capital required and available to grow. So the customers are even more excited than I expected them to be.

"We have our competitors out there beating up on us day in and day out, and now we've got the backing of probably the world's largest technology private equity company. So you know, I'm looking forward to going to work tomorrow," he added.

In an earlier statement, Mathews flagged plans to pursue an aggressive growth strategy after the financial wrangling was complete.

Highlighting several recent acquisitions funded out of cash flow, Mathews said Mincom had the opportunity to really extend its business in future, if it saw opportunity to grow through further buys.

Pending the approval of shareholders, the transaction is expected to close within the next 90 days.

Mincom's statement said Francisco Parters was one of the world's largest technology-focused private equity funds. The company has offices in California and London.

Topics: Government AU, Emerging Tech, Government, Tech Industry

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