Local software and consulting firm Forest Grove Technology has announced new leadership after completing a sale to giant Canadian group Prophix.
Local software and consulting firm Forest Grove Technology has announced new leadership after completing a sale to giant Canadian group Prophix.
Forest Grove founder Murray Westphal has handed over leadership to Ross Gaskell, who has been promoted from chief operating officer to managing director.
The sale comes 21 years after Mr Westphal established Forest Grove, which has grown to have 27 staff, mostly in Perth, and about 100 customers across the country.
He was the company’s major shareholder, while Mr Gaskell and chairman and legal adviser John Groppoli held minority stakes.
Its annual revenue is approaching $10 million, with a mix of recurring software-as-a-service income along with consulting income.
Its the second business exit for Mr Westphal, who sold his previous business All Solutions to international company Sungard.
The latest sale builds on a long-term relationship, after Mr Westphal secured the rights to Prophix’s decision support software 21 years ago.
Forest Grove expanded its portfolio to advanced data and data science technology after it secured the rights to German analytics entity KNIME.
With its suite of technology, Forest Grove has acquired about 100 customers across Australia and New Zealand, including ANZ, Foxtel, Asahi, Main Roads WA, RFDS, Revenue NSW, Juniper and Arc Infrastructure.
It has a particular niche in aged and community care.
Mr Westphal said that joining a large international company like Prophix was the logical next step for Forest Grove.
“After many months of discussions and review, we are delighted to accept Prophix's invitation to join their global family,” Mr Westphal said.
“As a mid-sized Western Australian company, we are incredibly proud of what we’ve achieved independently.”
The deal comes four years after European tech-focused private equity investor Hg Capital acquired a majority stake in Prophix, giving it more capacity to pursue growth.
Headquartered in Toronto, with offices in Europe, Asia, North America and South America, Prophix has some 3,000 active customers across the globe.
President & CEO Alok Ajmera said both Prophix and Forest Grove were the product of many years of hard work, dedication, and passion.
“We have had a wonderful relationship over the years, and we are thrilled to take it to the next level,: Mr Ajmera said.
"The addition of Forest Grove to Prophix marks an exciting new chapter in our shared journey.
“By combining our strengths, we’re well-positioned to deliver even greater value to our customers, while further expanding Prophix’s reach and impact across Australia, New Zealand, and beyond."
Mr Gaskell, who has been with Forest Grove for 12 years, said he was proud and honoured to step into the role of Managing Director.
“The acquisition sets the stage for Forest Grove’s continued growth and innovation, leveraging Prophix’s resources and expertise to expand its impact across Australia, New Zealand, and beyond,” he said.
