Madgwicks recently advised the owners of leading mobile app development company, Outware Systems Pty Ltd (Outware Mobile), on its sale to ASX-listed internet and cloud solutions company, Melbourne IT.

On 17 June 2015, Melbourne IT acquired 50.2% of Outware, with put and call options to secure the opportunity to acquire up to 100% of the company over the next two years.

Assuming Melbourne IT acquire 100% of Outware Mobile, the total transaction will be worth $67 million, with an EBITDA multiple of 8.6.

Madgwicks advised the vendors on all legal aspects of the sale including warranties and shareholding agreements which were critical components of the transaction, particularly as Outware Mobile’s founders, Danny Gorog, Eytan Lenko and Gideon Kowadlo, are to retain minority equity over the next two years.

Madgwicks’ team included Rick Goldberg, Partner, Naomi Kovacs, Special Counsel, and Jedd Watmore, Lawyer.

“It was an extensively negotiated deal which achieved the right balance of protecting the vendors while ensuring we achieved their commercial objectives,” said Rick Goldberg.

Melbourne IT and Outware Mobile already share a number of common customers in the enterprise and government space including ANZ, Google, Telstra, Coles, NIB and Australian State and Federal Governments. The alignment of the respective companies was viewed as a natural step to providing a more coordinated and extensive solution to their client bases.

Danny Gorog, Director of Outware Mobile, commented “This partnership means we will provide both Outware Mobile and MIT customers with a broader range of capabilities and leverage the expertise Melbourne IT has in delivering software enabled cloud solutions.”[1]

Rick Goldberg further noted, “It was great to work with such an innovative company and its three dynamic entrepreneurial owners. We look forward to continuing our relationship with the Outware team.”


[1] “Melbourne IT acquires Outware Systems Pty Ltd to become the market leader in software enabled cloud solutions in Australia”,, 14 June 2015

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