Information technology firm Iress is in discussions to buy planning software provider VisiPlan for the second time in four years.
Iress confirmed yesterday that it is in preliminary discussions with Visiplan's owners IWL following an Australian Stock Exchange price query. The query came after a $0.70 increase in Iress's share price since February 6.
IWL received an indicative, non-binding and conditional proposal from Iress regarding its potential offer to buy Visiplan.
Goldman Sachs JBWere said the acquisition of VisiPlan would give Iress a leadership position in the sector, with the only other competitor being Macquarie's Coin business.
The approach is the second by Iress for VisiPlan, following a failed attempt to merge with IWL in 2003.
The parties had completed legal and commercial due diligence and signed an implementation agreement before the deal collapsed.
Iress, as a result, brought VisiPlan competitor Xplan for $5.1 million in March 2003.
"This is an area that Iress sees as a growth business," Aspect Huntley analyst Jason Darling said.
IWL announced it expects a further update to be available sometime before the end of March.
At close of the market Thursday IWL shares had gained 2.3 per cent, up $0.11 to $4.88, while Iress slipped half a per cent, off $0.04 to $7.95.
