Datasquirt Relists on the NSX as Enprise Group in A$1.74m IPO

1st Feb 2013. Former ASX-listed New Zealand company Datasquirt has relisted on Australia’s “second board”, the NSX, in a $1.74m IPO, named Enprise Group (NSX:ENS).

This follows:

  • the sale of Datasquirts business interests to American call centre provider LiveOps in Novermber 2011 for A$12.5m
  • A distribution to Datasquirts shareholders of A$10m
  • The delisting of Datasquirt from the ASX
  • The acquisition of Enprise Solutions and 30% of 2Cloud.biz Limited
  • The renaming of Datasquirt to Enprise Group

Both Datasquirt and Enprise have connections to New Zealand entrepreneur Mark Loveys, formerly one-half of Kiwi 1980’s pop duo Satellite Spies.

The history of Enprise is told in Mark Lovey’s blog, http://www.exonet.net.nz/, and commences with the development of the SME accounting solution Exonet sold to Solution 6 for A$30m in August 2000. This solution is now marketed by Solution 6’s acquirer, MYOB, as MYOB EXO.

Having sold Exonet in 2000, Mark Loveys founded Datasquirt as an SMS text company, which went on to list on the ASX, developed a fully fledged “Contact” business for call centres and which was acquired in 2011 by US firm LiveOps.

In parallel to Datasquirt, Enprise was spun out of Solution 6 as a preferred services partner for the MYOB Exo product, with Mark Loveys as a shareholder and CEO (and non executive chairman of Datasquirt), inheriting a significant percentage of the Exo NZ customer base.

Enprise continued to develop through the 2000’s including  a cloud software business EMS-Cortex, sold to Citrix in November 2011, and an SAP Business One business unit. Mark Loveys bought out investor TMT Venture’s 60% of Enprise in a management buyout in April 2012.

Meanwhile Datasquirt, with its business sold to LiveOps, and most cash distributed to shareholders through a dividend, resolved to acquire the Enprise business. This was concluded September 2012 for NZ$2.1m.

Datasquirt delisted from the ASX 29th October 2012, changed its name to Enprise Group 1st November, and applied for listing on the NSX.

Post the NSX IPO, Enprise has profitable and growing operations and employs around 40 staff in New Zealand and Australia. Mark Loveys and Enprise Group CFO Elliott Cooper now hold around 30% of the share capital of Enprise Group. Other significant investors include Neiser Capital Investment Fund, managed by former Boston Consulting Group partner Dr Jens Neiser, and Nightingale Partners of Sydney, managed by Christian Bernecker.

DSQ Holdings chairman Christian Bernecker continues as chairman of Enprise Group, with Jens Neiser, Mark Loveys and Elliot Cooper continuing as directors.

According to New Zealand’s NBROnline, Mark Loveys described the purchase of Enprise “a bargain”.

“Enprise has a framework for growth with 100 retail partners around the world and 700 customers in New Zealand,” Mark told NBROnline. Also that he and fellow Enprise board members decided on an Australian listing to give it easier access to more investors. A secondary listing was also necessary as the cash redistribution meant it did not have sufficient capitalized shareholders for the main ASX.

“It’s still a public company, still accessible for people to buy shares. It’s an unusual situation, a New Zealand company listed in Australia,” Mr Loveys explained.
Mr Loveys said that the company now plans to push more into mobile and cloud-based products, as well as open new offices across Australia.

“I am delighted with the outcome,” Loveys says. “Enprise is a profitable and growing business that I would be happy to own in my own right. But it will be an even better business as a publicly listed company with better access to investment and the means to grow faster through strategic acquisitions.

“Both operating divisions of Enprise are ideally positioned in growing market segments. Enprise Solutions has momentum, reputation and cloud expertise that add up to a potent force in the MYOB EXO market across the region. Enprise Software has strong international growth prospects, continuing to develop add on software for SAP Business One.

“As Enprise grows I intend to maintain my shareholding at 20 percent – the maximum permitted before I would be required make a full takeover offer – and will work to build Enprise Group into a substantial software and services company delivering outstanding shareholder value,” Loveys says.

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