Diligent buys BoardLink from Thomson Reuters for $US10m
The company has been under pressure to do something with a growing cash balance in recent years.
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Diligent Corp [NZX: DIL], the governance app developer, has acquired BoardLink from financial services firm Thomson Reuters for $US10 million in cash to widen its portfolio of products aimed at company directors.
Similar to Diligent's BoardBooks product, BoardLink is a software-as-a-service board management application which operates on an annual subscription model, the New York-based, NZX-listed company said in a statement. The acquisition will add to earnings in the 2016 full year, and Diligent said it will provide more detail at its third quarter announcement next month.
"BoardLink brings a great team of professionals and a large, global customer base to Diligent," chief executive Brian Stafford said. "The acquisition of BoardLink aligns well with our growth strategy and provides us with a broader platform to expand and innovate from in the future."
Diligent is ramping up its investment on sales and marketing and research and development as it seeks to grow the value of the business. It plans to launch a new Diligent Teams product, to let companies use the firm's workflow and security software to improve collaboration, by the end of the year.
The company has been under pressure to do something with a growing cash balance in recent years, and has pushed against returning it to shareholders saying the funds would be better used to expand the business through acquisitions and new product development.
The company's shares last traded at $5.70 and have gained 30% over the past year.
(BusinessDesk)
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Suze Metherell
Tue, 20 Oct 2015
Tue, 20 Oct 2015
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Diligent buys BoardLink from Thomson Reuters for $US10m
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