Solution 6 hits damage control button

Last week, the company's proposed merger with Sausage Software fell apart just days after Telstra announced it plans to re-evaluate the e-commerce deal it has lined up with the solutions provider.

In an announcement to the Australian Stock Exchange this morning, Solution 6 sought to clarify statements in Friday's Australian Financial Review that its $20 million software deal with Deloitte & Touche may be "on ice".

In the deal, signed more than 18 months ago, Solution 6 is implementing its practice management system, CABS 2000, across Deloitte's global network. According to the report by the AFR, the US arm of Deloitte & Touche is yet to set a rollout date for the solution.

However, according to Solution 6's statement: "(We are) currently in the process of completing the build phase for North America and also concluding the rollout of CABS 2000 in Deloitte & Touche offices in three other countries.

"Both Solution 6 and Deloitte & Touche remain committed to the deal."

Solution 6 has billed Deloitte & Touche for more than $18 million in work, and according to the statement expects to "continue to derive significant revenue from the project going forward".

Contrary to claims by the AFR that Solution 6 has failed to secure any other CABS 2000 customers, the solutions provider said that CABS 2000 has been implemented at other sites, including KPMG Netherlands and Ernst & Young Netherlands.

At the shareholder meeting tomorrow, shareholders are expected to vote in approval for Solution 6's acquisition of Lawpoint, AlphaWest, and FishTech and Partners.

While it is intended the meeting will focus on the acquisitions, it is expected that questions will be raised concerning recent allegations against CEO Chris Tyler, the company's diminishing share price and the proposed deals with Sausage Software and Telstra.

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