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.

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