21 August 2017
Find out more

Brokat sells Adviser and Gemstone business units

16 August 2001  |  3316 views  |  0 sale

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.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Brokat seeks to raise cash - FT

Brokat seeks to raise cash - FT

30 July 2001  |  2822 views  |  0 comments
UCB selects Brokat for online business banking

UCB selects Brokat for online business banking

24 July 2001  |  3424 views  |  0 comments
Brokat solution powers the Wall Street Access e-trading platform

Brokat solution powers the Wall Street Access e-trading platform

12 July 2001  |  2763 views  |  0 comments
BancNet ATM consortium implements Brokat/Fujitsu e-payment gateway

BancNet ATM consortium implements Brokat/Fujitsu e-payment gateway

11 July 2001  |  4189 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comdownload the paper nowvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10219 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8554 views comments | 19 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
8302 views 0 | 3 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8228 views comments | 10 tweets | 7 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7506 views comments | 15 tweets | 14 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job