CommSoft spends IPO cash on Brains

By Phil Boeyen, ShareChat Business News Editor

Monday 15th January 2001

Telco software company CommSoft (NZSE: CSG) is paying $5.75 million to add a new customer relationship software product to its line-up.

The company will pay a mixture of cash and shares to purchase Auckland-based Media Technologies, which has developed a customer relationship management product called Brains.

It's the first major acquisition since CommSoft floated last September.

Chief operating officer, Rodney Martin, says the Brains technology is easy-to-use, flexible and highly scalable, and is web and WAP enabled.

"Brains will be totally integrated into the CommSoft family of shrink-wrapped, multi-platform telecommunications software products."

"This is the first of a number of acquisitions that we plan to make over time. It will enable us to grow revenues and earnings by selling new product through our existing sales force staff via our existing channels to our existing customers."

Mr Martin says CommSoft sales staff will begin immediate product training on the new software and the company expects to be closing sales before the end of March with significant contributions flowing in the next financial year.

He says the business had sales of $4 million in its last financial year, and has made a profit of $1 million each year for the past three years.

CommSoft says Brains has been based in Auckland since 1994 but also has offices in Sydney and Melbourne. Most current clients are in either in Australia or New Zealand, and include Toyota, Fosters Brewing and U-Bix.

The product has two platforms - Brains Enterprise for large businesses and corporates, and Brains Express for individual and small businesses.

The company says the software can be used for consumer marketing, business-to-business marketing, loyalty and relationship marketing, customer support, direct marketing, call or contact centre and sales force automation.

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