Goldmine Software, a sales force automation (SFA) vendor and Bendata, a customer service and support (CSS) vendor, plan to merge their companies to create the largest mid market provider of sales marketing and support systems.
Colorado based Bendata, a wholly owned subsidiary of Ixchange Technology Holdings, a public company based in South Africa, said it will buy all of privately held California based Goldmine's outstanding shares, about 10 million.
The new entity will have two divisions, one focused on front office applications for sales, marketing and customer support, and the other focused on internal help desk applications. It plans to roll out products called "Goldmine Frontoffice" in the third quarter, selling through the existing Goldmine channel.
"Our customers technologies and channels are completely complementary and our ability to execute is synergistically enhanced," said Jon Ferrara, executive vice president, Goldmine Software, "Equally important is our dramatically increased presence within the sales, marketing and customer service marketplace."
Bendata has a strong international presence with offices in Europe, Asia Pacific and South Africa. About 35 per cent of the firm's revenue comes from outside the US. Integrating the international operations and channels for the merged company will be the responsibility of Rob Katz, who was formerly the managing director for Microsoft sub Saharan Africa.
"We are confident in our ability to advance our worldwide initiatives and to grow into one of the top software companies in the world," said Katz, who will be executive vice president, worldwide sales for the company.
In addition, the company said Bendata has advanced tools for ease of use, customisation and management set up, that can be easily integrated to the Goldmine product line.
Goldmine's Frontoffice suite will include its Sales and Marketing and Goldmine Service and Support, while Bendata's Heat brand will continue for its internal help desk product line.
"With combined revenues of $52 million for 1998, more than 300 employees and more than 600,000 end users in its customer base, Goldmine is filling a void in the market for a functional, yet low cost solution of the small and medium sized business user," said Chuck Phillips, managing director of equity research with Morgan Stanley Dean Witter.
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