Applix CRM to Go Platinum
Applix Inc. began searching for a potential buyer to take over ownership of its CRM business, claiming the company would have the most success focusing solely on analytics. After nearly a year of searching for the right buyer and months of considering bids, Applix has decided to accept an offer tendered by Platinum Equity LLC. The $8.75 million dollar offer will allow Applix to pursue its goal of being a pure, stand-alone analytics vendor.
According to the information released by both companies, the deal consists of $5.75 million in cash paid to Applix and approximately $3 million in net liabilities being assumed by Platinum. Platinum, a company that specializes in the acquisition and operation of various technology companies, will take control of Applix's Web-based CRM suite of collaborative solutions.
Applix will subsequently drop all of its CRM business and focus its resources into one product line. According to David Menninger, vice president of worldwide marketing for Applix, the shift away from CRM will allow the company to move further into the business performance management (BPM) market as a pure analytics vendor.
Menninger cited that the current economy and a shift in the company's overall philosophy as the main factors prompting the sell off, even when the company had generated more than $36 million in revenue over the past year while selling both CRM and BPM products.
"The real concept behind this sale was focus," Menninger says. "In the past year, as we were looking for buyers, the focus in the company was shifting to analytics applications and delivering value to our customers."
Menninger also explained that Applix is not only continuing to refine its existing analytics applications, but are in the process of developing their next BPM solution.
When asked how the sale of their CRM business would affect Applix customers, Platinum's chief operating officer Rob Joubran explained that existing customers of the business would continue to be supported fully. "We're really focused on making this a smooth transition -- establishing this business as stand-alone company with minimal impact on customers and employees," Joubran says.