Sports, leisure and hospitality SaaS technology provider MSL Solutions Limited (ASX: MSL, “MSL”) today announced the acquisition of point-of-sale software company SwiftPOS.
Based in Brisbane with more than 23 years of experience as a POS software solutions provider, SwiftPOS is Australia’s leading hospitality and retail point-of-sale systems solution, with a footprint spanning 4,000 venues across 26 countries. MSL is the largest reseller of SwiftPOS in Australia, has worked with SwiftPOS since 2010 and has a deep understanding of the technology and its strategic fit within the MSL product suite.
The acquisition grows MSL’s customer base by more than 300% from 1,220 venues to more than 5,000, increasing MSL’s breadth through an extensive reseller network and aligns with the Company’s strategy to own all the IP for its end-to-end guest engagement solutions.
MSL Chief Executive Officer Pat Howard said MSL’s acquisition of SwiftPOS made sense given the synergies between the two businesses.
Mr Howard said:
“As the largest reseller of SwiftPOS, MSL is very familiar with the product’s technical and commercial merits. We’re excited about the opportunities that this acquisition will open to us, particularly in international markets, where SwiftPOS has established a competitive presence in 26 countries.
“Owning SwiftPOS’ IP rather than reselling it will enable MSL to generate a greater level of sales, gross margin and provide our customers with greater confidence and certainty in the technical roadmap. It opens up the ability to combine MSL’s IP with that of SwiftPOS as well as extend market channels for SwiftPOS-only products. Most importantly, this acquisition is accretive to customers, margins, cashflow and earnings for MSL.
“We look forward to welcoming Grahame Day and the SwiftPOS team to our group and will prioritise jointly advancing our point-of-sale offering, setting a clear roadmap for continued development of our technology to the benefit of our customers.”
Given the recent strong performance and cash position, MSL will initially fund the acquisition from existing cash reserves. However, the Company is currently finalising a debt facility to provide up to $2.5 million of additional working capital at market competitive rates, this debt facility is expected to be in place in early December 2020.
SwiftPOS founder and Managing Director Grahame Day will transition to the role of General Manager, SwiftPOS at MSL as part of the transaction and will have responsibility for maintaining relationships with the reseller network. MSL will also integrate all 17 current SwiftPOS employees into its workforce, to be located at the Company’s Brisbane premises.