The two companies have entered into agreements to be acquired by Montech (ASX:MOQ), with the listed-company to pay $3 million cash plus shares to buy Technology Effect, and $750,000 in cash and shares for Breeze.
On completion of the deal, the owners of Technology Effect and Breeze will become significant shareholders in a merged entity, but will continue to operate under their own brands until a rebranding slated for next year.
And, when the transaction is completed, Breeze CEO Nicki Page will be appointed as a Director and CEO of Montech, and Technology Effect’s co-founder Joe D’Addio will be appointed as a Director and COO of Montech. Both will maintain responsibility for their respective businesses.
“We are delighted about the merger, as well as the opportunity that Montech and its board have presented us, and we are looking forward to converting this into real value for our customers, staff and business partners,” Page said.
Page said the acquisition and forthcoming merger was brought about as a consequence of both Breeze and Technology Effect “exploring how to evolve and expand their businesses in terms of offerings, services and geographies in which they operate.”
“The emergence of the cloud has brought with it great opportunity, but it is changing the IT landscape significantly and rapidly.
“We firmly believe that there is a market opportunity in this new world for a niche organisation with a ‘Customer First, Cloud First’ culture, focused on deep integration capability across platforms, applications and data and which will differentiate itself through exceptional people, market leading commercialised IP and strong partnerships with leading technology providers.”
Technology Effect is a Brisbane-based, Queensland integrator and IT solutions company, and Breeze, a Microsoft partner, is a Sydney based application integration and software services firm using hybrid cloud techniques in delivery of system solutions.