Basware acquires TAG Services Pty Ltd in Australia

Basware Corporation (’Basware’) has today agreed on the acquisition of the entire share capital of TAG Services Pty Ltd (’TAG Services’ or the ’Company’) in Australia. The acquisition price will be based on the Company’s net sales for its fiscal year from July 1, 2008 to June 30, 2009 and the Company’s net asset value on June 30th, 2009. The acquisition price is estimated to amount to 2,25 Million Australian dollars (approximately EUR 1,30 Million, using exchange rate of EUR/AUD 1,7359 on June 30, 2009). The Company’s net asset value at June 30th is estimated to be 0,53 Million Australian dollars (approximately EUR 0,31 Million). The acquisition price will be paid in cash in two parts in July and August 2009.

In addition the deal includes an additional acquisition price element that is based on the Company’s net sales of the period from July 1, 2009 to June 30, 2010 and will be paid in August 2010 at the latest.

TAG Services has been Basware’s partner since 2001 and offers Basware Enterprise Purchase to Pay Solutions on the market. TAG Services’ net sales of the fiscal year from July 1, 2008 to June 30, 2009 was 2,26 Million Australian dollars (approximately EUR 1,29 Million) excluding the resale share to be paid to Basware and the operating profit was positive. The above mentioned figures are unaudited. TAG Services employs 15 persons who will join Basware in connection with the acquisition. TAG Services hold a strong position on the Australian markets, especially in the public sector. Customers include South Australian Dept of Health, South Australia Dept of Families & Communities and Novartis among others.

“We are strengthening our organic growth by acquisitions as per our strategy. This acquisition gives us a strong foothold on the Australian markets and enables us to further develop our business in Asia-Pacific region. After the acquisition we can sell Basware Enterprise Purchase to Pay Solutions directly to end-users. Now we are able to launch Basware Connectivity Services also in this market area. In addition the new geographical location allows us to offer 24/7 customer support to our global customers,” says Ilkka Sihvo, CEO at Basware Corporation.