Faritec Inter-Company Processes (ICP), a subsidiary of Faritec Holdings, has bought 40% of the issued share capital of CommerceChain Technologies, an application development and e-commerce services company. The organisations will work together to develop Microsoft-enabled business solutions.
Faritec ICP has been developing technology solutions to address the challenge of inter-company payment and presentation.
Kevin Mackenzie, director at Faritec ICP, says: "Companies looking for a competitive advantage are beginning to focus on the integration of business processes within the supply chain but there are a number of challenges that need to be addressed before these solutions can be implemented. The ICP team at Faritec has been working on an electronic invoice presentation and payment (EIPP) project but to take the development beyond the conceptual stage, we needed to expand our skill base. The inclusion of CommerceChain Technologies into Faritec ICP provides us with the ability to automate and package our solution into the marketplace," says Mackenzie.
Faritec has already made the strategic decision to base the solution on Microsoft technology. "The Microsoft BizTalk platform is becoming an increasingly mature technology that can be cost-effectively supported as well as rapidly deployed. CommerceChain Technologies was selected as the Microsoft partner as it has a reputation in the market for being experienced in using the Microsoft platform to create integrated solutions," says Mackenzie.
Initially, the intention was for Faritec ICP to partner with, rather than buy into, a software developer but once the two companies began discussing a possible partnership it emerged that there were a number of strategic synergies between the two.
James Melvin, chief technology officer of CommerceChain Technologies, says: "CommerceChain and Faritec ICP have very similar business visions in terms of developing technology solutions to facilitate and integrate inter-company processes. Once these synergies were highlighted, we wanted to align ourselves closely with their EIPP solution as well as other offerings of this nature that Faritec ICP will be working on in the future. Therefore, it seemed logical for Faritec ICP to buy into CommerceChain."
Faritec ICP has been developing the EIPP solution for a number of months, consulting with clients to create an integrated, third-party provisioned invoice presentation and payment solution that is founded on Microsoft BizTalk technology. The partnership with CommerceChain will ensure that Faritec ICP is in the position to take full advantage of the capabilities of the platform," says Melvin.
Additionally, this acquisition is an opportunity for both Faritec ICP and CommerceChain Technologies to build an integrated solution that will offer further growth opportunities for both companies. "The EIPP product will offer tangible business value to clients and enable us to take technology-based business services to a new level," concludes Mackenzie.
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