Software Futures, the software and services subsidiary of JSE-listed Computer Configurations Holdings (CCH), has acquired Eikon Software for R46m. Eikon is a Microsoft Certified Solutions Provider and South Africa`s first Sun Authorised Java Centre. This acquisition gives Software Futures critical mass in the field of application development using object and component technologies.
Earlier this year Eikon Software staged a management buyout from Brainware with the intention of pursuing a separate listing. "Eikon was initially pursued by a number of suitors before selecting Software Futures as its ideal and final home," says Eikon MD Themi Themistocleous. "We needed a group that shares our commitment to the technologies and approaches on which our business is built. What has impressed us most about Software Futures and CCH is their total commitment to and understanding of these technologies, up to and including board level."
These technologies represent the current best practices for application development, says Software Futures strategist Derek Hughes. Until recently these technologies have been considered by many organisations in South Africa as "bleeding edge". However, the rise of the Internet, e-business and Java has firmly placed objects and components into the enterprise mainstream.
"Application development is a key strategic focus area for Software Futures and CCH. Given the massive increase in the market for products and services in this area we needed to accelerate our own growth towards our goal of market leadership in this domain," says Software Futures MD Aletha Ling. "The acquisition of Eikon helps us meet this objective and we are now well positioned to make a serious impact locally and internationally."
The combined operation will have over 150 people with some of the best application development, project management and consulting skills available in South Africa. "The two companies have largely complementary competencies, products and services," says Hughes, "and this will allow us to create significant synergy."
Together Software Futures and Eikon represent the cream of object and component technology suppliers. Eikon have been the official distributors for Rational Corporation for more than five years. During that period Rational has become established as the leading provider of application development tools in the fields of requirements management, modelling, testing and configuration management.
"Most large companies in South Africa have adopted one or more of these products in their development environments," says Themistocleous. In addition to Rational, the companies provide middleware from Iona, object database and XML servers from Object Design, Java frameworks from BOMA and libraries from RogueWave and Ilog.
"We are in a business that cannot be divorced from technology. It is an essential element in our strategy to represent the best products in each class of development software," confirms Ling.
Through its relationship with Rational, Eikon has access to some of the world`s leading experts in the field. Software Futures has established similar relationships with other international gurus. The result is a South African company with access to the latest and leading thinking on the subject. "We intend to apply this intellectual capital to the benefit of our customers," says Hughes.
Eikon will continue to operate as a subsidiary of Software Futures, focusing on the marketing, sales and support of the combined product base. Eikon`s development and consulting staff will be merged with existing teams within Software Futures. The companies will soon relocate to new combined premises in both Gauteng and Cape Town.
"We intend to fully unleash the latent potential of the two companies," predicts Ling. "This is a case of one plus one equaling three," concludes Ling.
Share