Brokat sells Adviser and Gemstone business units
16 August 2001 | 3368 views | 0
Cash-strapped financial technology vendor Brokat Technologies has sold its Adviser Rules Management software business unit to US-based HNC Software for $20 million. The German company has also agreed the sale of its Gemstone Systems assets to investment group SGroup Holdings for $1.7 million.
The sell-offs come as Brokat seeks to cut costs and raise cash in a desperate bid to avert a looming financial crisis. Shares in the company plummetted after the recent release of lower-than-expected second quarter results, raising bankruptcy fears among some analysts.
Brokat says the disposals will signficantly reduce its operating costs, based on the elimination of approximately 160 employees and the closure of US offices. This is on top of a recently announced cost reduction programme aimed at trimming 300 staff and the closure of several non-US and German offices.
"Selling the Advisor and GemStone assets is part of our ongoing effort to improve our financial and liquidity position," says Michael Janssen, chief financial officer of Brokat Technologies. "We plan to reduce our commitment in the USA even more in the near future, due to the predicted stagnation of the market and the expected continued high investment requirements."
Brokat says it has concluded license agreements with both buyers to secure the rights to use the software within its product offerings.