Strategic alliance moves eg solutions to the centre of global stage
IN A move that provides it with significant international muscle, Staffordshire financial software supplier eg solutions has entered into a strategic partnership and re-seller agreement with US giant Aspect Software.
And eg is hoping to raise £1.25m through Aspect taking a stake of just over 10% in the business via a share placing.
Massachusetts-based Aspect, through its UK subsidiary, Aspect Software UK Limited has agreed to subscribe for 1,712,392 ordinary shares of 1 penny each in the capital of eg at a price of 73 pence per share.
The agreement is for a three year period initially
Under the agreement Aspect will have exclusive distribution rights for the eg operational intelligence software suite in Asia Pacific and the Americas and the rest of the world (other than Europe, the Middle East and Africa), and will work jointly with eg in Europe, the Middle East and Africa.
The firm’s eg operational intelligence software will also be integrated with Aspect’s eWorkforce Management and Performance Management products to provide a single back office optimisation solution.
Aspect will invest resources in sales, sales support and delivery, as well as providing international support for eg’s global customers.
The Staffordshire firm will also provide training and sales support, including awareness training for Aspect’s entire sales team and specialist training and sales support for its back office optimisation team.
Under the agreement Aspect is entitled to appoint a non-executive director to eg’s board and will announce details of the first appointment in due course.
Elizabeth Gooch, eg’s chief executive officer, said: “We are delighted with this strategic partnership and re-seller agreement. Aspect is totally committed to the rapidly emerging back office optimisation market and recognises eg’s technology and product leadership in satisfying the requirements of this new market.
“Both companies are totally aligned in approach to back office WFM and performance management. Together we offer a single solution to manage work and optimise resources both within and between the front and back office.
“We are now able to take full advantage of this major growth opportunity and accelerate the expansion of our customer base and geographic reach, as well as strengthen our capabilities for existing customers.
“This partnership will enable us to secure further contracts with our global clients and rapidly increase distribution of our products and services. Combined with the strategic client wins we have secured over the past 12 months the partnership will transform the financial prospects of the company.”
Spence Mallder, senior vice president, general manager of the Workforce Optimization division and chief technology officer at Aspect said: “Aspect will now be able to seamlessly orchestrate the people and processes that flow within and between the back office and front office to optimise how service is delivered.
“eg’s domain expertise in the back office, along with the most open and flexible work distribution solution on the market, made them a natural strategic partner for Aspect.
“The complementary software and expertise of eg and Aspect create a very powerful process optimisation solution that efficiently delivers a cohesive, customer-delighting service experience.”
Meanwhile, eg has issued a trading update covering the second half of the year to January 31.
Revenue for the year ending 31 January 2013 is expected to be significantly below market expectations at £4.81m.
It said this is partly due to a number of pilot projects being delayed while talks with Aspect progressed.
“Following the completion of the Aspect agreement, it is expected the projects will move to full implementation with the previously anticipated revenues falling into the current year ending 31 January 2014,” it said.
