Johannesburg, 28 May 2007
Software development house IndigoCube has purchased the consulting business of Software Futures, in a buyout by past and present management.
Software Futures is under curatorship as part of a larger investigation into the management of investor funds at parent company Fidentia. Earlier this year, co-curator Dines Gihwala said a number of firms were interested in buying Software Futures.
IndigoCube CEO Themi Themistocleous says the company has successfully concluded discussions with the curators and is now the owner of Software Futures' consulting business.
ITWeb has in its possession a copy of a confirmation letter from Fidentia co-curator George Papadakis. In it, Papadakis reveals that, as of 22 May, the fixed assets, customer contracts, partnership agreements and intellectual property of Software Futures' consulting business were sold to IndigoCube. Additionally, he notes that all consulting staff have resigned and taken permanent positions at IndigoCube.
"It is the second time that past management has tried to buy this side of this business. This time, it is a joint effort between past and present management and we have been successful. The contract was signed last week, the sale is effective," says Themistocleous.
The value of the acquisition has not been disclosed.
Management buyout
IndigoCube's largest shareholder is Vistar. The company was formed by Derek Hughes following his departure from Software Futures and has four additional ex-Software Future shareholders, namely: Themistocleous, Alan Gibbons, Vaughan Diedrick and Graham Fowler.
Themistocleous joined Software Futures following the company's acquisition of Eikon Software in 1999. Earlier the same year, Themistocleous was instrumental in the management buyout which saw Eikon split from parent Brainware. He featured in the management teams of subsequent owners CCH and MGX. Since his departure from Software Futures, Themistocleous has been CEO of IndigoCube.
Ex-Software Futures MD Hughes is also a member of IndigoCube's shareholder. Having orchestrated the acquisition of Eikon, Hughes proceeded to lead both CCH's and MGX's software divisions. Hughes left Software Futures after the Kopano Brown Brothers consortium outbid the management offer put forward to MGX for its sale.
Gibbons was formerly Software Futures' CIO; Diedrick, at one point COO of the company; and Fowler, ex-financial director. Various managers within IndigoCube hold the balance of the IndigoCube shares.
"[The purchase of Software Futures' consulting arm] was done with the full support of Software Futures' team manager, Ziaan Hattingh, and all of the staff. Hattingh and his team are now employed by IndigoCube, and key members of this team have themselves purchased shares in IndigoCube. The management team running IndigoCube [consists of] Themistocleous, Jesse Naicker and Hattingh," says Hughes.
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