RealTime IT News

CorVu Takes Minnesota in "Back-Door" Nasdaq Listing

Business intelligence vendor CorVu, which started in Sydney but has moved to the US, has announced that it will merge with an Internet start-up in its new home to help raise funds on the NASDAQ stock exchange.

CorVu will undergo a "reverse takeover" with Minnesota American, a small company worth less than AUS$8 million (US$5 million) with two businesses targeting schoolchildren called LockerMate and Favorite Memories.

Under the terms of the deal, Minnesota will sell off the two companies, which made AUS$4.5 million (US$2.9 million) last year, in exchange for 25 per cent of the combined company and two board seats.

While Minnesota American is listed on the NASDAQ exchange, ten-year-old CorVu only entered the US market in 1995, although it now makes almost half of its revenue in the American market with offices in Minnesota, Atlanta, Boston, Chicago, Dallas, New York, Los Angeles, San Francisco and Washington. CorVU has also expanded into Europe, based around an office in Rotterdam.

Justin Macintosh, Australian-born CEO of CorVu, will possess a controlling interest in the merged company as he now owns more than three quarters of CorVu.

CorVu expects to double its revenues next year from AUS$19 million (US$12 million) to AUS$40 million (US$26 million), as it joins most of its fellow BI vendors in releasing enterprise information portal software. The company said its revenues had "nearly doubled" in the past two fiscal years as well, with an installed base of over 2,000 customers.

The two companies said they anticipated that the transaction would close in the fourth quarter.