GetSwift takes majority stake in Serbian ICT firm for $9.1m
3 February 2020, Written by Matt Ogg
A pending class action has failed to push software company GetSwift (ASX: GSW) off the acquisition path as it seeks to cement its footprint in the European market.
The company has purchased a majority stake in Serbia-based information and communications technology (ICT) firm Logo d.o.o. for 5.5 million euros (AUD$9.1 million),.
GetSwift's expansion comes a year after buying two US businesses Delivery BIZ Pro and Scheduling+ for $8.2 million, catering to the North American market where the majority of new customers were acquired in the 2019 fiscal year.
The move also comes 12 months after the group set up its second development centre in the Serbian capital Belgrade to service customers in Europe and the Middle East.
Now with a combined company of 200 staff, the acquisition will help GetSwift become a one-stop-shop in Software as a Service (SaaS) logistics and technical services with added offerings including data centers, communications infrastructure and Infosec (information security).
GetSwift management believes this will allow the company to work with larger enterprise clients and accelerate its global expansion.
GetSwift CEO Bane Hunter and chief operating officer Robert Bardunias will join logo's supervisory board as chairman and vice chairman respectively.
Meanwhile, the Melbourne-based group is set to face a class action in the Federal Court on 17 August in relation to ASX announcements made in 2017 about high-profile deals that sent GSW stock skyrocketing.
However, fewer than half the contracts from these agreements actually led to revenue, leading to a mass sell-off and share price drop in February 2018.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg