It’s Tuesday. Here’s what you need to know.
1. Oneflare has bought Word Of Mouth Online in a deal understood to be worth seven figures. Launched four years ago, Oneflare now has more than 60,000 businesses in Australia using the platform and late last year secured a $1 million investment to fund international expansion.
2. Don’t ask Atlassian co-founder Mike Cannon-Brookes to invest in a reverse takeover. He almost always thinks it’s a bad idea. There have been dozens of small cap tech companies reversing onto the ASX via listed mining shells over the past 12 months. It’s a trend which has worried some of Australia’s tech investing elite. Atlassian is expected to IPO in the US some time this year – a move which will also benefit a bunch of Atlassian employees with options and has some saying could generate a wave of angel investors in Australia. Cannon-Brookes could be warning his own about how they invest their winnings. We’ve asked him and will let you know if we hear anything.
Backdoor listing a tech company on the ASX is almost always a bad idea, a sign they couldn't raise real capital. Investors should avoid.
— Mike Cannon-Brookes (@mcannonbrookes) February 16, 2015
3. SEEK stocks are getting destroyed after half year results failed to impress the market. On the face of it SEEK posted a record profit of $182.8 million, up 64%, but when an accounting gain from an acquisition is taken away net profit falls to $94.1 million – below analyst expectations. More here.
4. Freelancer posted an NPAT loss of $1.5 million for FY14 but its user growth is going gang busters and that’s pleased the market. More here.
5. Payments-tech companies like PayPal and Square are moving into lending and disrupting banks in the US. In Australia Tyro boss Jost Stollmann said FinTech is at a crossroads and the regulator needs to step in to level the playing field and ensure startups don’t move into the “shadow space”. More here.
Have an awesome day! I’m on Twitter.