| Tue 4 Sep 2001, 0:00 | | Two Focussed Software Firms Emerge From Ability |
|
Ixchange Technology Holdings
Press Release
Ixchange Technology Holdings has sold the Ability - Inventory Optimization
as well as the Ability - eCommerce Fulfillment and Ability - Financial
Management businesses to two separate management-led consortia. This ends
months of speculation about the future of the Ability product range in light
of Ixchange's plans to dispose of its non-core businesses and gives
customers the assurance that the products will be supported, developed, and
enhanced into the future.
A consortium of management, staff and financial backers - including CEO and
President Tony Cunnington, South Africa MD Shoaib Patel, head of R&D Graham
Blunn and Chairman Johan Buys - has purchased 80% of the Ability - eCommerce
Fulfillment and Financial Management business. Ixchange will retain a 20%
stake in the business.
Says Cunnington: "This is the best possible outcome for existing Ability
customers since it guarantees the future of the products. We will be putting
a lot of energy into enhancing the products in the years to come. It is
also significant that the business is being sold back to the original
vendors, who were acquired by Ixchange in 1998."
Cunnington points out that the Ixchange board has demonstrated its faith in
the underlying value of the new Ability business, as well as the strength of
the products, by retaining a 20% stake in the company and moving ahead with
an implementation of Ability - eCommerce Fulfillment at the FrontRange's US
headquarters.
This business will retain the Ability branding and will employ around 75
people. Cunnington says a renewed offshore push, through an indirect
distribution model, is on the cards once the local operation is bedded down.
Ability - eCommerce Fulfillment and Ability - Financial Management is used
by approximately 20 000 users. 90% of sites are listed companies.
Xponential Solutions, led by Derek Kreunen and Malcolm Buxton, has acquired
100% of the Ability - Inventory Optimization business for R4.5 million.
Buxton from Xponential Solutions says: "We believe that the Inventory
Optimization business will flourish as an independent company. We have more
than 25 customers live on the software and a strong sales pipeline, so the
business has a good base to build on and some exciting prospects."
The new Inventory Optimization business employs 25 people. Cunnington and
Buxton both stress that the move will have little impact on the existing
South African customer base. The two businesses have retained a great deal
of operational independence from Ixchange, with each maintaining its own
dedicated R&D, sales and support structures.
The two new companies will continue to operate out of the same offices in
Sunninghill, and will work closely together on joint customer sites in the
future.
Julian Pienaar, recently appointed financial director of Ixchange Technology
Holdings, says that the sale of the two Ability divisions concludes the
streamlining of Ixchange to focus solely on the midrange service and support
and customer relationship management market through its FrontRange Solutions
subsidiary.
"Ixchange has taken the decision to focus management and financial resources
on FrontRange Solutions, which accounts for approximately 90% of revenues.
"Selling these non-core operations to management, who are committed to the
ongoing development of the product ranges, looks after the interests of
existing customers and unlocks the future potential of the businesses,"
Pienaar adds.
Further media information:
Evan Bloom Tracey Newman
FHC Ability Solutions
(011) 608-1228 (011) 808-6155
Evan Bloom
General Manager - Strategy
FHC
http://www.fhc.co.za
TEL: (+27)(011) 608 1228 (ext: 213)
FAX: (+27)(011) 608 1300
Street address: FHC House, 29 Galaxy Road,
Linbro Business Park, Linbro Park, Sandton, SOUTH AFRICA.
Postal address: P.O. Box 3335, EDENVALE, 1610, SOUTH AFRICA.
