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Espreon Acquires Billback Systems
Saturday, 3 September 2005 15:28
Espreon Acquires Billback Systems
On 5th August 2005, Espreon Limited signed a Share Sale and Purchase Agreement to acquire a business called Recount Expense Management Systems Pty Ltd (trading as Billback Systems ).
The transaction should be completed by mid September at which time Billback will become an Espreon business.
This is a significant event for Espreon:
- It more than doubles the value of the company
- It strengthens Espreon's position as a service provider within the domestic legal sector (they have 989 Australian clients, including 39 of the top 50 Australian Legal Firms)
- It provides entry into international markets for Espreon. Billback Systems currently operates in the US (45 US clients, including 11 of the top 200 US Legal Firms) and the UK (15 UK clients, including 5 of the top 20 UK Legal Firms) and we believe they are poised for further international growth
- It improves many aspects of Espreon's financial performance (for the Financial Year ending June 2005, their Net Profit Before Tax was approximately $5.7M)
- It provides a relevant and exciting new product for many of Espreon's existing clients and will open doors to important new business
A very brief background to Billback Systems is outlined below.
Billback Systems, founded in 1983, develops, supplies, implements and supports cost management systems for the global professional services sectors. Many businesses within the professional services sector are engaged by their clients on the basis of an hourly rate plus expenses (often described as out of pocket expenses). Billback Systems provides the necessary hardware and software to capture such out of pocket expenses to allow them to be allocated, where appropriate, for billing to end clients.
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