TeleComputing Buys Commtouch’s Hosted Exchange Customers

In the ever-consolidating world of ASPs, you have buyers and sellers. ASP pioneer TeleComputing is definitely on the buying side of the equation.

The ASP and application aggregator announced today that it is acquiring the assets of Commtouch Software’s hosted Microsoft Exchange messaging business, including 30 of its business customers using hosted messaging applications. TeleComputing estimates that the move will add about $500,000 a year in recurring revenue.

In addition, as part of the agreement, Jamcracker will become a channel partner for TeleComputing’s business messaging and collaboration services based on Microsoft Exchange Server 2000.

For ASPs looking to leave the hosted messaging business, TeleComputing may be the way out. The company’s president and CEO Jason Donahue says that TeleComputing — which has offices in Sterling, Va., Fort Lauderdale, Fla. and Oslo, Norway — will continue to seek acquisitions of other private-label and enterprise hosted messaging, collaboration and communications customer bases from companies divesting of these businesses.

For Mountain View, Calif.-based Commtouch, the sale allows it to focus on its core competency. “We have decided to exit our hosted Exchange service business to focus on developing and selling messaging software,” said Gideon Mantel, CEO of Commtouch Software . “By transferring our customers to TeleComputing, we are confident that they will receive the highest levels of service available in the hosted messaging industry.”

The sale of its hosted messaging business is one of several recent cost-cutting moves made by Commtouch. Last week, in the company’s earning report for the fourth quarter of 2001, Mantel said, “Upon successful execution of these transactions we will continue to minimize our cash burn and expenses and our target is to become cash flow positive by the end of 2002. We expect to have
sufficient cash to continue operations until we become cash positive.”

TeleComputing, which is traded on Oslo Stock Exchange (TCO), was founded in 1997 and is one of a small number of Microsoft Gold Certified Partners for Hosting and Application Services.

It is currently listed as a Top 20 ASP by ASPnews.

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