JSE-listed Ixchange Technology Holdings ("Ixchange") has acquired 72% of Cape-based software development company NeuraTech for R16,5 million in cash.
Neuratech designs and develops software for information and knowledge management, specifically its NeuralFrameWork 2000. The acquisition is effective 1 April 2000.
The acquisition forms part of Ixchange`s Incubator Programme, which aims to identify emerging technologies before they enter the mainstream, and through investing in them, to help them increase their value and exposure in local and international markets, and to leverage off the more mature group companies` customer base and partnerships.
NeuraTech employs 30 people and has a strong customer base including BoE and new home loan company RCS. It sells its products directly and through a local and international partner base including MB Worksoft eKnowledge, the JSE-listed AST-A group, Mintek and UK-based Technosys.
NeuraTech`s technology has been in development for four years. It is based on Microsoft technology and brings together structured and unstructured data to allow organisations to have a common and universal view of all data in their organisations. This is particularly important as companies try and gain insight into all customer interactions in pursuit of customer relationship management (CRM) initiatives.
"Many thousands of companies locally and millions globally have standardised on Microsoft Outlook as their messaging and collaboration platform," says NeuraTech CEO John Swanepoel. "Vast amounts of customer information are tied up in Outlook across these companies. Our goal is to allow these organisations to leverage their investment in Microsoft and thereby let everyone share that information. This also provides a development platform and architecture for building any business application and integrating to the structured information residing in business systems. Organisations can thus store, view and retrieve data in the same way the human mind works."
"Our investment in NeuraTech underlines the importance of our Incubator business division," says Ixchange CEO Derek Kreunen. "As a company we invest in a number of qualified emerging technology companies, on the assumption that at least one of them is likely to be as great a success as our GoldMine and Ability businesses. This ensures we maintain our growth and continue to provide our shareholders with the return on investment they have come to expect.
"NeuraTech has every chance of being a great local and international success based on the foundation it has laid," adds Kreunen. "It has got through the critical early period in its business, has a good customer base and is now expanding internationally with an office in London."
NeuraTech plans to deliver the latest version of its software in July.
This will be sold through a reseller channel; in August it will deliver the CRM front-end to NeuralFrameWork 2000. In addition, it is soon to announce a collaborative software tool, based on Microsoft architecture, that will compete head-on with the globally successful Lotus Notes platform. Swanepoel says NeuraTech had attracted other offers, but the Ixchange investment made the most sense.
"Ixchange is a successful international software publisher which is able to provide the right degree of focus on smaller companies because of the Incubator programme. "Ixchange give us international reach and a far greater level of marketing and sales capability," says Swanepoel, "and a world-class customer and reseller base for our products."
The acquisition will not have a material effect on Ixchange`s earnings.
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