RealTime IT News

Euro909.com Acquires Danish ERP Firm

European e-business enabler euro909.com this week moved to acquire a Danish enterprise resource-planning company to initiate transforming the firm into an application service provider.

euro909.com entered into an agreement to acquire Global Business Solutions A/S (GBS) for 100,000 shares of its stock, making the deal worth more than $725,000.

The acquisition of GBS should be completed sometime in July and will convert euro909.com's Web hosting strategy into an application hosting resource for small and medium size European enterprises.

The deal should shore-up euro909.coms e-business product line-up because it will be enable the firm to manage software-based business solutions across a wide area network from its central data center in Soborg, Denmark.

GBS provides enterprise resource-planning solutions based primarily on the Damgaard Axaptad integrated enterprise programming, developed by Danish-based Damgaard A/S. GBS is an authorized business partner within Damgaard's global network, which extends throughout more than 25 countries worldwide.

Aldo Petersen, euro909.com president and chief executive officer, said the deal lands it firmly in the ASP arena.

"The acquisition of Global Business Solutions gives us the ability to penetrate the booming ASP market by utilizing GBS's expertise in ERP consulting," Petersen said. "By joining forces with Damgaard A/S and having the expertise of GBS in-house, we believe euro909.com will be well equipped to meet the challenge within this new market sector.

The ASP Industry Consortium reports that as much as 25 percent of companies in Scandinavia, 66 percent of U.K. companies, and 40 percent of French companies are planning to purchase from ASPs during the next 18 months. Banking and financial services, transportation, utilities, as well as travel and tourism industry sectors have eagerly put the ASP delivery model to work in Western Europe.

Claus Olsen, GBS chief executive officer, said the combined companies would comprise a formidable ASP force in Europe.

"We view the opportunity to market ASP solutions to euro909.com's customer base as tremendous, Olsen said. Being able to offer Web-hosting, e-business solutions and other application hosting will give euro909.com and GBS a competitive advantage over many."

Formed in 1986, euro909.com integrates Internet technology and multimedia solutions for thousands of Western European enterprises. With offices in Scandinavia, the United Kingdom and France, euro909.com delivers value-added consulting and technology solutions from domain name registration to broadcast media advertising.