Canada’s Enghouse Acquires Kiwi Unified Comms Firm Zeacom for US$30.6m, 1*TTR

31 May 2012. Enghouse Systems Limited (TSX:ESL) announced today that it has acquired Zeacom Group Limited for a purchase price of US$30.6m, subject to price adjustments.

Zeacom’s annual revenues for fiscal 2012 were approximately US$29 million, indicating a price of approvimately 1 times 12 months trailing revenue (TTR).

The acquisition provides a liquidity event for Sydney-based secondary Australian private equity firm Accretion Investment Management, who took over AMP’s New Zealand private equity technology investment portfolio in 2003, after it (AMP) exited its joint venture with NZ investment manager Caltech Capital Partners in an out of court legal settlement.  Calltech/AMP invested NZ$6.9m in Zeacom in 2000/1.

Headquartered in Auckland, New Zealand, Zeacom’s contact center software and business process automation solutions have been installed in over 3,500 customer sites worldwide. The Zeacom Contact Center product is a full multi-media product offering a cloud, hosted or on-premise solution. It is primarily targeted at the SMB contact center market and distributed through an extensive telephony reseller channel.

Zeacom’s recently released new products are also well positioned to meet the growing need for software-centric solutions. Zeacom has operations in New Zealand, Australia, the United States and the United Kingdom.

“We are excited about the acquisition of Zeacom,” stated Stephen Sadler, Chairman and CEO of Enghouse. “Zeacom presents us with a great opportunity to address the SMB space more effectively, extend our reach into new geographies and further position Enghouse to meet the evolving needs of our current and future customers.”

“We are very pleased to be joining Enghouse – a well established, global provider of management interaction solutions,” stated Miles Valentine, CEO of Zeacom. “In a consolidating and evolving market, scale and resources matter and with Enghouse, we found the perfect partner to take advantage of the market opportunities ahead of us.”

About Enghouse Systems Limited

Enghouse Systems Limited (TSX:ESL) is a publicly traded Canadian based software and services company founded in 1984. Enghouse’s overall strategy is to create a larger and more diverse enterprise software company through strategic acquisitions and managed growth.

Enghouse serves a number of distinct vertical markets through its three divisions, each developing and selling enterprise oriented applications software.

  • Enghouse Interactive specializes in communications software and services that are designed to enhance customer service, increase efficiency and improve person to person communications across the enterprise.
  • Enghouse Networks develops and markets network software and visual computing solutions for a broad range of utilities (eg. Telecos, Electric, Oil and Gas) that are deploying next generation networks and smart grid solutions.
  • Enghouse Transportation develops and delivers solutions for public and private transportation industries through innovative applications and consulting support.

Enghouse aggressively pursues acquisition opportunities in both its existing markets and potential new ones. Enghouse seeks companies who develop and sell customer focused software solutions that are complementary to any of its existing businesses, or offer opportunities for Enghouse to enter new vertical markets, in fragmented industries. Its criteria include:

  • Customer focused software solutions
  • Reasonably established companies with an existing customer base
  • Revenue greater than $7 million

Pure technology plays or start-ups are usually not considered unless they complement an existing business or product line. Enghouse is also willing to acquire companies that may require management expertise, leadership, or simply additional resources, including distressed or turnaround situations, underfunded companies and divisional divestitures.

About Zeacom Group Limited Zeacom is a leader in communications solutions that deliver Multimedia Contact Center, Business Process Automation and plug-in Unified Communications functionality that bring customers closer. Established in 1994, every day more than 3,500 sites rely on Zeacom’s enterprise-class solutions to improve the customer experience, increase productivity and understand their communications workflows. A managed Independent Software Vendor (ISV) on Microsoft Lync, Zeacom has partnered with NEC for 17 years, is a Cisco Premier Partner and a registered member of the Avaya DevConnect program. The company has partners and offices in North America, Northern Europe and Asia Pacific. For more information, please visit

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