TWO SIGNIFICANT announcements last week by Solution 6 — provider of software solutions to law firms and accounting practices globally — revealed the company had given in to offers it could not resist to sell parts of its business.
Last week’s announcement that the company had signed an agreement to sell its professional and enterprise business to Francisco Partners was followed closely by reports that the business would continue to operate as normal. Managing director Des Odell said the company would be strengthened by the availability of significant investment capital.
Solution 6 also agreed to merge its accounting and compliance business with MYOB. “The merger will take our well known and respected brands more strongly into global markets for the benefit of the expanded company’s customers, employees and investors,” said MYOB CEO, Craig Winkler.
In the last 18 months, Odell told Lawyers Weekly, the global software markets had recovered. “As a result, Solution 6 was approached with offers for different parts of the business,” he said.
“It was driven by people wanting to buy into the company and we thought we could get a very good deal for our shareholders.”
He said Francisco Partners had been looking at the company for some time. “They liked the industry, the company and the management team. They wanted to use our company as a cornerstone to expand the new company, which would form the basis of a much bigger company.”
“This really is a win-win situation for Solution 6 clients and staff,” Odell said. “Operations within the professional and enterprise business will continue as normal as Francisco Partners is fully committed to the Solution 6 products strategy, including CLO, CMS.Net, Keystone, Novient and Business Intelligence,” he said.
For clients, there will be no short to medium term changes, and in the long term there should be significant benefits, according to Odell. “Local customers should not be concerned. There will be no change in the support that local NZ and Australian customers receive,” he said.
On a daily basis, clients would continue to work with the same people, and “with a strategic investor at the helm they can also expect additional long-term benefits that will stem from a sharper focus on clients’ needs and access to capital”, Odell said.
The company’s professional and enterprise solutions clients will see benefits over time, including the availability of significant investment funds and a more global outlook, according to the company.