15th Aug 20011. South Australian business software firm Prophecy International Holdings (ASX:PRO) has completed a cash and stock transaction to purchase the business of Intersect Alliance, a Canberra-based software company which specializes in a range of open source and proprietary security software.
The consideration included 3 million Prophecy shares and close to $2 million in net cash. The acquired business is expected to produce from $750k – $1 million of profit in the remaining 11 months of this financial year.
On the announcement, Prophecy shares jumped 20 per cent to $0.18.
This business will be run through Intersect Alliance International, a new subsidiary company of Prophecy International. Prophecy will work with all existing partners to promote the Snare products internationally.
InterSect’s flagship product is Snare Server, which provides agents for event monitoring, logging and analysis. The Snare solution is used by groups including the Commonwealth Treasury, NASA, the US army, Vodafone and Fujitsu. It provides a very important facet of system security for all types of large commercial and government organizations.
The new business revolves around a larger number of smaller sales transactions and will complement Prophecy’s current profile of a smaller number of larger sales transactions.