Brokat Achieves Initial Progress in Corporate Restructuring

U.S.-based HNC Software Inc. will acquire the Advisor Rules Management software business unit of Brokat Technologies, a subsidiary of German-based Brokat Technologies AG for U.S. $20 million according to a statement released by Brokat this week.

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By  Massoud Derhally Published  August 30, 2001

U.S.-based HNC Software Inc. will acquire the Advisor Rules Management software business unit of Brokat Technologies, a subsidiary of German-based Brokat Technologies AG for U.S. $20 million according to a statement released by Brokat this week.

Brokat also has signed a definitive agreement to sell its GemStone Systems assets to privately held SGroup Holdings USA, Inc. for U.S. $1.7 million. Brokat has concluded license agreements with both buyers to secure the rights to use the software within Brokat’s product offerings. Both events come on the back of corporate restructuring efforts initiated in June as the company has been financialy striken in the wake on a downward trend in the technology sector.

Proceeds from both transactions of U.S. $21.7 million will contribute to improving Brokat’s financial position. Through the divestitures, Brokat will reduce its operating costs based on the elimination of approximately 160 employees and the closure of offices. These steps are part of a comprehensive plan intended to restructure Brokat Technologies as a profitable entity.

“Selling the Advisor and GemStone assets is part of our ongoing effort to improve our financial and liquidity position,” said Nigel Spear, Brokat Technologies Country Manager for the Middle East. “We plan to reduce our commitment in the USA even more in the near future, due to the predicted stagnation of the market and the expected continued high investment requirements.”

"The Middle East, however, is a region where we have been performing particularly well and we at Brokat anticipate continued growth in the coming months ahead," added Spear.

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