Shares in Dialog Corporation rose sharply today on the news that the debt laden information services provider had clinched a multi-million pound licensing deal with Fujitsu.
By noon today, Dialog shares had jumped 13.7 per cent to £1.24 on the back of the deal, understood to be one of the biggest to be signed by a UK software developer to date.
Fujitsu will incorporate Dialog's Infosort electronic indexing technology in its hardware and services offerings, including its Internet service provider business, which is Japan's largest.
Infosort can be used to automatically scan and index electronic information from a variety of sources, including emails, internal documents, spreadsheets and databases.
Dialog will develop a Japanese character version of the software, which Fujitsu will use as a global corporate standard for information filing in its own operations.
Fujitsu will also act as a global reseller for Dialog's online business information services, Dialogweb, Datastar and Profound, which provide market research and data to the scientific, engineering, medical and business communities.
Formed as a result of a merger between Knight Ridder Information and Maid in 1997, Dialog's reputation in the City has been shaky in recent months, following concern about the high debt levels it continues to carry.
Dialog chief executive Dan Wagner said the Fujitsu deal was not related to Dialog's ongoing efforts to secure refinancing.
Dialog's debt level was "sustainable but not appropriate" and the firm would remain focused on short term initiatives to alleviate the situation, Wagner said.
Wagner refused to disclose the exact value of the Fujitsu alliance, which was described by both companies as a "multi-million pound deal".
The contract builds on the back of a relationship between Fujitsu and Maid established in 1997.
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