SQL Financials has agreed to acquire Elekom Corp in a deal valued at about $15 million and has changed its name to Clarus to signal its change of direction.
Clarus was set up at the end of 1991 and sold a database based finance package to the medium sized business market before adding the human resources package it bought from Personal Data Systems last year.
While Clarus has OEMed Elekom?s product for the last nine months, the purchase will now give it a more secure foothold in the business to business electronic procurement market.
Stephen Jeffrey, Clarus? president and chief executive, said: "At the start of this year, we began to look at corporate service applications and extending back office packages to the front office. We found that our name was too narrow, focussed and limiting, so we decided to change it, but we did it now because we agreed to acquire Elekom."
"We see Elekom as being strategic to getting us into the business-to-business electronic procurement market, which is forecast to grow very rapidly."
He added that the company was not trying to set itself up as an enterprise resource planning vendor and would remain focussed on its chosen markets, in particular verticals such as financial, business and professional services.
Elekom, which Jeffrey claims is second only to Ariba in its market, has seven customers and is expected to turn over $2 million this year. Its 43 staff in Bellevue, Washington, will not be relocated but the organisation will be fully integrated into Clarus? business.
Neither companies sell outside of the domestic US market at the moment, but Jeffrey expects to put plans for expansion into Europe via the distribution channel into play next year. The browser-based front-end and process and routing software included in Elekom?s product will be developed to provide a portal to Clarus? other applications and third party packages within the next 18 months.
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