The founders of former JSE-listed company Smacsoft have left acquirer AFA Systems to set up a new software business, Cape Town-based Kizen.
Smacsoft, an investment management software company, was founded in 1996 and listed on the JSE`s development capital market in 1999, reaching a market capital of R150 million at its peak.
It was sold to UK-based AFA Systems for R70 million in 2001.
Kizen director Robert Chung says the former Smacsoft directors, who became directors of AFA Systems, had two-year service contracts with AFA.
"Last year we started engaging with AFA in terms of going forward, but we couldn`t come to an agreement," he says. "There was nothing unpleasant about it - it was all very amicable."
The four - Neil Hampton, Robin Kemper, Brett Domleo and Chung - launched Kizen last month.
Kizen`s business is the development of software solutions for financial markets and its strategy is to sell in both local and international markets.
Chung says the company is operating in a space in which AFA is not involved. "AFA develops integrated investment management software, while we provide a sophisticated middle office suite."
Kizen`s services include systems design, systems implementation and conversion, and systems support.
The company has signed its first major deal, partnering with investment manager Allan Gray to build a solution called Symmetry Compliance, which will be part of an integrated middle office application.
Hampton points out that Allan Gray usually does its development in-house and this is the first time it has used a third-party to develop significant investment functionality.
He says Kizen`s name is taken from the eastern management philosophy, Kaizen, based on continuous improvement through change.
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