RealTime IT News

Durlacher Forms App-X to Support ASPs

[London, ENGLAND] European research-driven investment group Durlacher Corporation Plc announced Thursday the formation of App-X, with $16 million funding, to provide support to Application Service Providers (ASPs).

The emergence of the ASP market over the past 18 months has been tracked closely by analysts at Durlacher. Getting in on the act itself, Durlacher has formed App-X to help ASPs by offering supporting services, starting with billing and systems integration.

As part of the deal, Durlacher is leveraging its existing investments in systems integrator ASP Global and billing services supplier Copernicus, selling its $3.75 million investment in the latter at cost to App-X. It is selling a 28.7 percent stake in ASP Global for an undisclosed sum.

Of the $16 million funding, private financial investors will put up $15 million, leaving Durlacher to find just a small fraction of the capital -- although, by virtue of selling its investments in the two software companies, it will own 37.5 percent of App-X.

Geoffrey Chamberlain, chairman and chief executive of Durlacher and chairman of App-X, said the application of in-depth industry research, followed by pursuit of opportunities like App-X, was a hallmark of the Durlacher model.

"App-X is a further example of the increasingly pro-active approach which Durlacher takes to capitalize on the knowledge base it has been building over the last six years," said Chamberlain.

Paul Brandwood, group director Solutions Marketing, Nortel Networks, said that the ASP Market is exploding in Europe, with strong demand for the types of services supplied by companies like ASP Global.

The strategy that will now be pursued by App-X is expected to be one of further acquisition and investment. Durlacher expects the ASP market to migrate from early adopter stage to mainstream over the next 18 to 24 months.