Connexionz Sells UK Operation31 July 2009 The Board of Directors have carefully considered where the best business opportunities for Connexionz will be, and it was agreed our future success will be determined by our ability to continue to win new business, and expand our offering to existing customers in the United States. Consequently it was decided to divest our UK operations and a sale arrangement has been completed with existing UK management to structure a management buy out. Whilst Connexionz will no longer own the UK operations, the arrangement will ensure the Connexionz brand will be retained in the UK and Europe, as the new UK organisation will retain the name Connexionz UK and will distribute Connexionz products in the UK and Europe. Additionally Connexionz will have distribution rights for any products developed by the new UK organisation in North America and Australasia. The synergies we had expected to be realised when Connexionz purchased Infocell (the UK entity purchased in 2006) failed to eventuate as it was realised migrating existing UK customers to the New Zealand system would be a very onerous and costly proposition, and consequently development and support in the two sites continued on divergent paths. Sales efforts were coordinated well, but the dearth of new business in the UK and non-renewal of the Manchester maintenance agreement has meant that the UK operation has failed to generate the revenue or income that was anticipated when the business was purchased. The UK organisation will now operate independently under the direction of Russell Gard and his team with the focus of supporting the cornerstone customers in Reading and Southampton and generating new business as opportunities are identified. However both organisations will continue to work closely together to share marketing intelligence and drive sales for both organisation's products, and the Connexionz brand, across the globe. Any questions may be directed to Chairman Craig Boyce Ph 029 534 5508. |
