NZ software company sold for $us20m to satellite broacaster

By NZPA

Friday 2nd February 2007

Two shareholders in a Ponsonby software company, Synergetix, have sold a digital signage subsidiary, Wallflower Global Ltd, for $US20 million ($NZ29.7 million) to a Bangkok-based corporation.

Wallflower director Tony Scott said in a statement that he was "stunned" but "hugely excited" by the Global Satellite Broadcasting Corporation (GSBC) purchase of his subsidiary.

Scott, who owns Synergetix with the company's quality control manager, Lynda Scott, said he would stay with the newly branded GSBC Wallflower company as president and chief technical officer.

"GSBC has bought the team, the software and the reseller network.

"We had been talking to a number of companies for a while, but these guys -- GSBC -- have a really exciting vision that finally persuaded us," he said.

"It's a terrific opportunity for Wallflower to accelerate its international roll-out with GSBC and the SmartScreen technology. It's a great fit."

Wallflower -- split from parent Synergetix late last year -- provides corporate video displays and kiosks in Australia and New Zealand.

GSBC aims to become the first global supplier of a fully integrated digital advertising platform with data transfer management systems -- essentially broadcasting to individual flat-screen televisions, using mobile phone text messaging technology.

It has recently purchased another seven businesses around the world, and Scott said the Wallflower operation covered Australasia and added expertise in corporate and kiosk signage.

"They already have contracts signed and sealed to roll out hundreds of thousands of screens in China," he said.

Synergetix was formed in 1994 to develop software and Internet-based products. Its work has included a route management system for New Zealand Post, betting analysis for the New South Wales TAB, information systems for Cerebos-Greggs, Te Papa, Huntly power station and social welfare agencies.

Since 1998 Synergetix has developed and marketed Wallflower digital signage, a customer relationship management and loyalty product, and a retail analysis product for slicing and dicing data.

It has also produced an international travel and reservation portal for lodge bookings over the Internet, and a property management system for small accommodation providers.

GSBC was founded by entrepreneur Ronald Flynn using technology patented by Hong Kong inventor Tung Ho Ming to transmit high quality digital data to stand-alone TV screens.

It uses SMS broadcasting to run continuous television ads in malls, shops and other high-traffic buildings, and plans to roll the technology out globally.

Flynn has said GSBC will exercise its patent rights and seek licence fees from the Chinese company, Focus Media Public Company (FMPC) , which last year listed on the NASDAQ exchange with a share asset value listed at $US2.38 billion.

FMPC is reported to have unsuccessfully tried to buy the patents for $US50 ($NZ74.29) million.

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