Despite a poor H1 Kewill remains proactive and is boosting its SaaS capabilities with the acquisition of PointandShip Software. Terms were not disclosed – although acquired gross assets were $1.8m, approximately £1.2m.
It is saying little about acquisition, but it will enable Kewill to add cloud-based software for parcel shipping and shipping expense management to its existing platform. It could attract additional customers who want access to multi carrier shipping without having to invest in infrastructure. In our view this is a nice tuck-in acquisition, it is not the solution to its wider revenue problems, which have been largely caused by the loss of the Nokia contract and reduced revenue from the HP/Palm deal (see Kewill suffers in all regions on H1). It is an example of another SaaS provider being acquired by a 'traditional' software vendor looking to accelerate its move into a hybrid on premise/on cloud operating model.