Jade Software to acquire Contec, boosting SaaS & dairy focus
Jade Software has reached an agreement to acquire Contec Group International, a company with a global presence in dairy supply chain management software. The deal, which is subject to customary conditions, is anticipated to boost Jade's annual revenue by up to 25% and broaden its reach in the SaaS sector.
Market expansion
Contec's MADCAP platform is used by six of the ten largest dairy processors worldwide, including names such as Nestle, Land O'Lakes, and Saputo. The software enables customers to digitise milk supply chains, optimise tanker routes, test milk quality, and manage payments to farmers. Jade plans to further grow MADCAP's presence, aiming to double its market share over the next three to five years.
"MADCAP is a world-class, high-performing platform redefining how the global dairy industry operates. Contec has built a loyal MADCAP customer base, and a strong growth pipeline with expansion opportunities across all six dairy producing continents. Jade's focus is on accelerating and supporting these growth plans," said Justin Mercer, Chief Executive Officer, Jade.
Portfolio diversification
With this acquisition, Jade extends its SaaS portfolio beyond its existing RegTech offerings, including the Jade ThirdEye platform that monitors banking transactions in New Zealand, Australia, and the United Kingdom. The move into AgriTech is viewed as a significant change in direction for Jade, which has primarily concentrated on regulatory technology solutions to date.
Industry alignment
Both Jade and Contec are based in Christchurch. The acquisition will unite two long-standing technology companies from the same city to focus on the international dairy sector. Contec's Managing Director Tama Haas emphasised the longstanding relationship between the two organisations.
"Jade has been by our side from day one. We've leveraged their robust, reliable and scalable technology to build the world's leading dairy supply-chain software and take it to the world. Jade was selected as the purchaser due to its commitment and capability to support Contec's growth aspirations," said Tama Haas, Managing Director, Contec Group International.
Geographic reach
Once the acquisition is completed, Jade will have a workforce of over 300 employees across New Zealand, Australia, and the UK, with the largest contingent based at its Christchurch headquarters. The leadership team sees further expansion opportunities not only in additional international markets but also across adjacent commodity segments.
"The Contec team have done a fantastic job over the past 25+ years and now Jade will be investing in Contec to accelerate existing growth plans and capture new market opportunities. Our team knows how to scale industry-specific technology. Through Jade ThirdEye, we've achieved sustained growth of 40% year on year - clear proof of the global appetite for our SaaS platforms," said Mercer.