Dutch B2B software firm TIE Holding NV has acquired Digital Channel, a privately held web content and marketing information management specialist to expand its technology portfolio and customer base.
Amsterdam-based TIE will fork out around $2.7m (EUR 2.1m) in cash, shares and convertible bonds. The deal is expected to close at the end of July.
Digital Channel develops technology that helps companies manage product and marketing information via the Internet across sales and reseller partner channels.
The technology will allow TIE to bolster its B2B integration and interoperability applications that let companies do business electronically over the Internet. TIE said that customers would benefit from lowered costs by synchronizing product information and business processes with suppliers and partners across their supply and demand chains.
TIE is also eyeing joint business development opportunities across both customer bases through related marketing/sales processes.
Digital Channel provides a great opportunity to add more content to the typical non-visible system-to-system communication of TIE, said Dick Raman, CEO and president of TIE.
Similarly, we’re providing a great opportunity for Digital Channel to add more value for their customers by doing to their supply chain, what they are already doing to their information chain: namely managing it and speeding it up.
Digital Channel has carved out a strong niche for itself in the IT sector. Notable customers include Microsoft, HP, Cisco, Fujitsu-Siemens, and Siemens. It also packages up vertical applications for highly specialized markets like water sports and cycling.
TIE will also inherit an expansive 500-strong global reseller network.
Digital Channel has offices in The Netherlands, UK, Germany and Scandinavia. Layoffs are expected. TIE said that only key employees, mostly in sales and marketing, would be retained. The owners of Digital Channel will continue to be employed under a three-year lock-up agreement.
TIE, which is a publicly listed firm founded in 1987, said the move is part of an aggressive acquisition strategy to expand its technology and services base and revenue stream. TIE claims thousands of customers worldwide across all major industry sectors. It has offices in Europe, North America, Latin America and Asia.
Digital Channel’s UK subsidiary will become a subsidiary of TIE.
Digital Channel is expected to generate revenues of around $2m (EUR 1.6m) this year.