$17M Deal Frees Clarus From ERP Market
With enterprise resource planning sales waning over the lastyear, business application vendor Clarus Corp. has decided
to bail out of the market completely and focus exclusively
on its business-to-business E-commerce offerings.
Clarus inked a deal yesterday to sell its accounting and
human resources applications business to Geac Computer Corp.
for $17 million. The transaction, which is pending
regulatory and Clarus shareholder approval, is expected to
close in the fourth quarter.
Clarus Corp., which has 300 customers and had revenue of
more than $40 million last year, says it based the decision
on rapid growth of its E-commerce products business, namely
its Web-based procurement application. The company says the
market for Internet applications requires a different
strategy from that of the ERP market in terms of technology,
channels, and operational style.
The sale to Geac, which covers all of Clarus' ERP assets and
150 employees, is the latest in a string of Geac ERP
acquisitions. The company acquired U.K.-based JBA last month
and Dun & Bradstreet Software several years ago. Geac says
the latest deal reinforces its consolidation strategy to
capture the business of midsize companies.
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