Nonetheless, Financial Objects believes that the all share deal will be earnings enhancing with the first year of ownership and points to cross-selling opportunities, a GBP 500,000 ($948,150) annual saving by the closure of WMS’ head office and the use by WMS of Financial Objects Bangalore development center.
Financial Objects, which trimmed back its loss to GBP 45,000 ($85,243) on revenue 9.5% lower at GBP 9.5m ($18m) in the year to December 31, is taking over a company that recorded a net loss of GBP 277,000 ($524,720) on revenue 17.3% lower at GBP 6m ($11.4m).
However, WMS has been acquisitive and has added document management to its product portfolio. With the squeeze that financial companies have put on their suppliers such mergers will become increasingly commonplace.
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