Bucking the trend of Australian companies buying into New Zealand, New Zealand web and app company Rabid Technologies has acquired Squareweave, a strategic design and web development agency based in Melbourne. The new trans-Tasman company will have offices in Auckland, Wellington and Melbourne.
Rabid Technologies, a development company which builds web and mobile applications for organisations such as NZ Post, PledgeMe and Oranga Tamariki, is excited about the opportunities this merger provides, says CEO Breccan McLeod-Lundy.
“We have worked overseas before, but with this acquisition we will have a permanent home in Australia, and we can leverage our experience on both sides of the Tasman,” says Breccan.
Squareweave’s values and skills align directly with those of Rabid, and the aim of the company is “to make a meaningful difference to the lives of our clients, their customers and the planet” says founder Will Dayble.
What does this mean for Rabid Technologies?
This is the second acquisition for Rabid Technologies, following their purchase of (Auckland based) Resistor in 2015.
The acquisition adds Squareweave’s 10 staff members and a number of clients such as Yarra Valley Water and the Victorian Women’s Trust to Rabid’s already strong portfolio. The acquisition, for an undisclosed sum, includes minority shareholding roles for Squareweave founders Will Dayble and Luke Giuliani, who will remain involved in the strategic direction of the company. “Breccan and I have known each other for many years; he has built a stable technology company with strong values and I believe that this acquisition by Rabid will give us the scale we need to grow and address the bigger technical challenges faced by government and non-profit organisations in Australia,” says Will.
The New Zealand tech sector contributes $16.2 billion to the national GDP, employing over 120,000 people*; and Rabid has grown strongly over the last 18 months, coming 25th in the Deloitte Top 50 in 2017 with 300% year-on-year increased revenue. Rabid has a policy of ploughing their profits straight back into the business.
“Acquisition, both on and offshore, is definitely part of our long-term growth strategy. We would love to have company in this strategy of growing New Zealand businesses, rather than the traditional pattern of selling out for the bach, the boat and the BMW,” says Breccan. “We believe it’s a real option for many New Zealand businesses.”
*figures from MBIE’s 2018 Investor’s Guide to the New Zealand Technology Sector