ASX-listed reseller Data#3 has sold its Microsoft Navision business to Eclipse Computing for an undisclosed fee.
Most of the 18-strong Data#3 Navision team, including all of its senior managers, had already accepted positions with Eclipse, Data#3 CEO, John Grant, said. But an unspecified number of jobs has been lost due to duplication.
Grant said the Queensland-based company had grown its Navision business during the past four years through acquisition – f5 and Stockford Limited – as well as organically.
But the decision to get out of the Microsoft Business Solutions (MBS) game had come about because Data#3 was unable to achieve the necessary growth in that part of its business.
“The Navision business was always seen as strategic because it created other business,” he said. “But it became apparent about 3-4 months ago that the business needed to be much larger than it was.
“People in that business don’t grow on trees and it’s a very competitive marketplace. Growing the business was taking too much time so we started looking around for an applications company with the critical mass and scale that is needed. Eclipse certainly has that.”
As part of the agreement, Data#3 and Eclipse have signed a strategic partnership that will see Data#3 retained as preferred technology provider for Eclipse’s Navision customers and Eclipse as preferred enterprise resource planning (ERP) provider for Data#3.
“ERP is a tough market,” Grant said. “I’m not disappointed with the work done by our people in SAP or Navision but I am disappointed that we have had to make a decision based on the realisation that we were unable to grow a business to the required level.”
While the sale means Data#3 is now out of the MBS space, Grant said the reseller would maintain its other relationships with the software giant, which had accepted the decision to divest in Navision and endorsed the sale to Eclipse.
“This [Navision] was the smallest element of our relationship with Microsoft,” Grant said.
“Being a Microsoft reseller is still a significant part of our business and we have seen particularly substantial growth in Microsoft services based around SharePoint during the past 12 months.”