CSG’s deal with Entellect Solutions has collapsed after the conditions of the agreement could not be met.
In March, the ASX-listed integrator (ASX:CSV) granted an international software licence to Entellect (ASX: ESN) in exchange for shares in the company. It would have seen CSG receive about $9.75 million worth of shares in Entellect, representing an 18 per cent stake.
The agreement involved CSG’s Learner Enterprise and Learner Analytics software to be sold by Entellect in all markets excluding Australia and New Zealand. In a statement, CSG said the transaction was subject to several conditions.
“These conditions could not be met by ESN,” the statement read. “CSG will continue to work with Canadian Company, and the Administrative Assistants Limited (AAL), on potential alternatives for the international opportunity.”
At the time of the deal, CSG CEO, Dennis Mackenzie, said it would allow the integrator to exploit its intellectual property (IP) in foreign markets without changing its focus on the Australian market.
The venture was set to target the US, UK, Middle East and Canada.
Meanwhile, Entellect subsidiary, MXL Consolidated has been placed into voluntary administration. The company provides business solutions predominantly for the education sector. Its main product is called eMinerva that supplies student management capabilities.
Geoffery Reidy from Rodgers Reidy Chartered Accountants has been appointed as the administrator.
“The Board of Entellect will work closely with the administrator of MXL to assist in the orderly administration of MXL’s affairs,” the company said in a statement to the ASX. “As a consequence of this material adverse event, the Board of Entellect Solutions requests that all shares in Entellect be suspended from trading.
“The company is not aware of any reason why voluntary suspension should not be granted.”