Solution 6 made a bid to incorporate e-commerce initiatives into its application service provider (ASP) business last week, buying 15 per cent of stockbroking company Hartley Poynton.
Chris Tyler, CEO of Solution 6, claims Hartley's alliance with the Royal Bank of Canada and its Internet investment capability bolster the software developer's ASP potential.
"Our research showed that Hartley Poynton's position as an Internet-based investment technology leader will give us the best performance in a full range of investment services we are planning to offer in our ASP software services platform," he said.
Amid market speculation, which has seen Solution 6's share price suffer, Richard McLean, Solution 6's manager of global sales and marketing, claims the stake, worth $14.7 million, is part of the company's long-term vision. "It was a delivery step in our strategy to deliver applications and information via the Internet," he said.
McLean claims there is "a revolution" in the financial services market led by the Internet, so the stake enables Solution 6 to offer added value to its accounting client base.
As well as the investment, the two companies have formed a revenue-sharing initiative in which Hartley provides trading engines for Solution 6's Internet portal, with the companies splitting the income generated by the venture.