Mark Loveys leads buy-out of Enprise

TMT Ventures 60 percent shareholding acquired in management buy-out

Enprise co-founder and managing director Mark Loveys has led a multi-million-dollar management buyout of the company, acquiring the 60 percent shareholding held by venture capital fund TMT Ventures. The exact amount hasn’t been disclosed.

The Enprise Group management team includes chief financial officer Elliot Cooper.

Loveys says he plans to accelerate growth in MYOB EXO implementation and support services across Australia as well as in Enprise’s global SAP Business One applications development business.

MYOB EXO was originally called Exonet, developed by Loveys. Its name was changed when Loveys and partners sold it to Solution 6 for $A30 million in 2000. According to Enprise estimates based on new system sales in the Australasian mid-market, MYOB EXO has 18 percent market share. Next is Dynamics NAV with around 11 percent, Dynamics GP with 10 percent, SAP Business One 9 percent, and Xero 5 percent.

Enprise Group has two operating divisions, Enprise Solutions and Enprise Software. The solutions division, which is the larges MYOB EXO services company in New Zealand, opened a Sydney office last year. It has more than 700 customers in Australasia.

The software division develops and sells add-on vertical solutions for the SAP Business One software suite to a global customer base. Its flagship product, Enprise Job Costing, is used by more than 300 SAP Business One customers around the world.

Loveys says the management buyout and related growth plans have been enabled by the divestment last year of Enprise subsidiary EMS Cortex, acquired by Citrix. TMT Ventures invested in Enprise in 2006 with $2 million in cash and its full shareholding in EMS Cortex, a cloud provisioning start-up company.

TMT Ventures is a high-tech investment company formed in 2000 by Telecom, Alcatel Lucent and several high-net-worth individuals.

“The divestment of EMS Cortex has been a game changer for Enprise,” Loveys says. “The TMT Ventures investment fund which held a 60% share in Enprise is due to wind up next year. TMT has been focused on maximising the exist value of its investment, which has been successfully achieved.

“We are now very much back in growth mode. We have the immediate capital resources we need to grow both parts of the business, including making acquisitions using our own funding, and with strong interest from new investors.

“Over the coming year we will open new offices in the main centres of Australia. We anticipate some acquisitions where there is a good cultural fit among existing MYOB EXO services companies. We are interested in companies that can grow and add extra customer value by leveraging the greater scale and depth of support and implementation services that Enprise can offer.”

A major growth focus for both business units will be around cloud hosting, cloud services and mobility solutions.

“Our advantage in this area is a legacy of our ongoing involvement with the EMS Cortex cloud provisioning platform, both prior and subsequent to the sale to Citrix,” Loveys says.

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