Auckland-based software company Keystone Solutions listed on the London stock exchange last week following a capital injection of $10 million from London venture capital company Calidore Group.
Keystone Solutions develops, installs and provides services around its Keystone software — a suite of applications designed to support the management of a large professional services firm. Keystone employs around 50 people in Auckland and eight in London.
Calidore Group was a London-based cashed-up investment shell company looking for a company to invest in. It came across Keystone Solutions which counts four large London law firms among its customers. The company did a reverse takeover and the new company, Keystone Software, was listed on the alternative investment market of the London stock exchange. Prior to listing, Keystone Solutions was owned by six staff members.
Keystone's marketing director, Kaye Sycamore, says the listing will inject operating and development capital necessary to sustain the company's continued growth.
"Although Auckland will remain the development and support hub for the company, our head office will move from Auckland to London as we position ourselves to build on Keystone's existing success in the UK market," says Sycamore.
She says current Keystone managing director Graeme Frost will continue as the CEO of Keystone Software. Existing Keystone Solutions shareholders will receive just over 34% of the stock in the new company. This will increase to 50.71% over the next three years, provided agreed profit and growth performance are achieved.
Calidore Group was an investment vehicle formed by two London entrepreneurs. Their initial float in June last year raised £2.5 million.
Keystone's product, NZ Law, is used or is being implemented at more than eight legal firms including Bell Gully Buddle Weir and Philips Fox.