MB Technologies Limited (MBT) has announced that it has acquired a 50% interest in LiveTechnology for R30 million. In addition, MBT has undertaken to provide a further R25 million to fund further developments and global rollout plans.
According to Leo Baxter, CEO of MBT, the acquisition is the culmination of months of intensive investigation into the Internet market. "The Internet is already having an enormous impact on business and commerce and MBT had targeted it as a strategically important area for the group. It became clear to us that product-based Internet business was the most viable entry point. We researched all the product-based internet businesses in SA and quickly identified LiveTechnology as by far the most viable and exciting business operating in this area of the Internet," says Baxter.
LiveTechnology today incorporates LiveBuilder, LiveAudit, FindProduct and WebSA. "The company not only has one of the most exciting business models I have seen in a long time, but it also has a unique range of technology solutions which allow the company to adapt to the ever-changing market sectors," says Baxter. "The Internet is radically changing the way companies do business as well as the value chains of today, and we believe that every business including the smaller enterprises and sole proprietors will soon require a website and e-commerce facilities."
Baxter says, "The fact that LiveTechnology and its business partners have the ability through their software and technology to quickly build e-commerce and website facilities for these enterprises for as little as R200 per month, has catapulted them to the forefront of this sector of the internet market." He adds, "The software also allows highly sophisticated sites to be built - this is done in SA by subsidiary WEB SA as well as authorised LiveBuilder partners."
The success of the products locally and the huge international demand for website's has lead to the formation of LiveTechnology International - with offices in the USA, Australia and New Zealand. The company is planning to extend it's competitive edge by opening a further 12 international operations with local partners over the next 12 months."
Wayne Reuvers, CEO of LiveTechnology International Inc, says, " The decision to go with MB Technologies was largely based on the experience and international contacts of the MBT executives. We wanted to be part of a technology company that understands how to market and rollout software and services on an international basis," he concludes. The group has a highly successful track record as well as global contacts in the technology and Internet markets."
Bridgit Domyan, group executive director of LiveTechnology, states that management and staff are excited about the future prospects of the company and moving forward with MB Technologies. Domyan concludes, "LiveTechnology will continue to provide complete Internet solutions, allowing clients to embrace the capabilities of the Internet without changing the manner in which their current business is conducted - we believe that functionality and the ability to service the customer is vital for a company to be able to leverage internet business."
Live Technology has until now enjoyed a successful partnership with Paradigm Interactive Media Limited who provided the company with a start-up platform and access to the resources necessary to pursue intensive product development. The two companies will continue to enjoy a business alliance, with Paradigm C.I.T standardising on LiveTechnology products and business solutions. "Paradigm was instrumental in elevating LiveTechnology to its current financial value and in doing so has received an excellent return on it's investment with the sale to MBT", says Domyan.
Baxter says the company has great products, some very exciting opportunities, and importantly, has global positioning. "We saw LiveTechnology as an organisation that could play a strategic role in the evolution of the Internet as a business tool."
Baxter says that on a recent visit to the USA the executives of Live Technology met with the major international merchant banks with a view to a potential listing on the NASDAQ within the next 12 months. "A leading Merchant Bank who has between 10 and 15 technology companies presented to them daily, rated LiveTechnology`s, LiveBuilder solution as the most exciting they had seen." He adds, "In fact, all the banks have come back with a positive interest in taking the company public."
"The potential for the company is enormous," says Baxter. "Even if we only get 200 000 companies of the 1 million planned for, the figures are exciting, but like most innovative Internet and technology companies, investors should exercise caution. While we cannot at this stage see any reason why this company should not reach its potential, it is in a new and fast moving area of the world market.
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