Insys Business Solutions, SA`s largest business partner for Interact Commerce (formerly SalesLogix) has closed its office doors and is in the process of splitting the company into three separate businesses.
Insys had been planning a 2001 JSE listing.
In June, Insys announced the acquisition of MetaLogix, another local Interact Commerce partner, but the deal has since fallen through.
Brian Packham, MD of Insys, says the shareholders` decision to close the group was a difficult one, but was a purely financial decision.
"It was a very painful split, but we had no choice. The fact of the matter was that we were not operating profitably anymore. Our revenue numbers just weren`t there anymore.
"Some of the staff were retrenched, some have found positions with customers and the remaining staff have gone [left] with the management.
"We have split into an enterprise resource planning division, a customer relationship management division and an e-business division. We haven`t finalised any of the arrangements yet and all three divisions will trade under different names," he explains.
According to Packham, nothing has been finalised as to what the future of its distribution rights to SalesLogix will be.
The ex-MD says there is no clear direction as to what the rest of the Insys directors will be doing, but he says at the moment he is devoting his attention to allaying customer concerns.
However, he is adamant that every possible attention will be devoted to looking after existing Insys customers.
Packham says he expects a formalised resolution to become available by the end of next week.
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