Methodware is a profitable software development company generating significant revenue from the sale of software and services in New Zealand, Australia, the United Kingdom and the United States, where Jade has a strong presence. They are also established in South America, South Africa, Asia and Europe, where Jade has yet to establish itself, but where there is huge potential.

Jade's Managing Director Dr Rod Carr said: "Last year we announced that we were actively seeking to acquire software companies in similar sectors to supplement and accelerate organic growth. This is the first such acquisition.

"There is a good fit between the two companies on a number of levels with the potential for both businesses to prosper and grow. There are a number of similarities between the two companies; Methodware was founded in New Zealand but has established a significant presence globally and has most of their growth opportunities in foreign markets."

Like Jade, Methodware develops and owns the software it provides. Their products provide tools to assess and manage enterprise risk and to validate, for example, compliance with Sarbanes-Oxley and Basel II requirements. Furthermore, both companies have the expertise and tools to deal with complex and changing data models.

"Methodware is particularly strong in the financial services sector - banks, building societies, insurance companies and brokers. Their products can complement Jade's bespoke software development in this sector which currently provides some 25 percent of Jade's revenue. Buying Methodware provides Jade with a suite of products to fit alongside and complement our specialised bespoke development capabilities."

Established in 1993, Methodware products and services have been sold to over 1,500 customers in 80 countries through offices in North America, the United Kingdom and New Zealand. The company's financial services clients include Lloyd's of London, Skipton Building Society, Investec and Friends Provident. Other large global customers include McCain Foods, LVMH, Corporate Express, Halliburton, Callaway Golf, Adobe and Yahoo. New Zealand customers include Airways Corp, IRD, Ministry of Health and NZ Defence Force.

"The majority of Methodware's revenue is earned offshore. Jade is already one of New Zealand's top export earners from the sale of software IP and related services. This acquisition will boost Jade's export earnings and allow both of us to access new markets for the products and services of both companies, as well as extend our offering to current clients."

Methodware will continue to trade under its own brand. Staff, distributors and customers will continue to look to the leadership of current Chief Executive Dr Chris Moxon and Chief Technology Officer Paul Waddington who will continue in their current roles and as directors of the business.

Methodware's outgoing Chairman John Stace said: "Having seen Methodware grow in recent years, joining forces with Jade will enable the company to accelerate its expansion through further investment in product and market development. Methodware will also benefit from Jade's experience in software development, systems hosting and presence in overseas markets such as Australia, the USA and the UK."

Dr Carr said: "We are having further discussions with a number of other potential acquisition targets. This is consistent with our intention to pursue growth through a combination of distribution through OEMs, establishing alliances with companies such as CMC Limited the publicly listed Indian IT service company, and through new customers and an increased share of existing customers work."