Local Software Spectrum in management buyout

Australian and New Zealand management has bought out the professional consultancy side of multinational Software Spectrum in the two countries and will rebrand it as Naratis.

Australian and New Zealand management has bought out the professional consultancy side of multinational Software Spectrum in the two countries and will rebrand it as Naratis.

This follows a decision in May by US-based Software Spectrum to divest itself of its consultancy operations. It closed down the unprofitable operations on this side, and was in discussion with potential industry buyers for the profitable consultancy units in Dallas, Chicago, Toronto, Sydney, Melbourne and Wellington.

“They were struggling to make that side of the business work globally,” says Naratis joint executive director and former New Zealand general manager of Software Spectrum, Rob Cooper, since it was not part of their core business of licensing software.

The new company will continue in a similar IT consultancy field, but “will have a tighter focus on what is required locally,” Cooper says.

The US-influenced style of operation assumed different staff within a client company could deal with the two different facets of Software Spectrum and not meet the same people or perceive any conflict. This was much harder in the smaller communities and with the lower staff levels of the Australasian companies, he says.

With Naratis specialising in consultancy, this potential conflict will not now arise.

Software Spectrum had a general manager in each country, substantially independent from one another, Cooper says, and this limited the amount of co-operation and the possibility of exploiting successful Australian projects for the New Zealand market or vice versa. That will now become part of the strategy of the new company.

Consultancy staff were offered stock options in the new company if they moved across, and all 55 did, Cooper says.

The software licensing side of Software Spectrum in Australia and New Zealand , with around 100 staff will continue operating.

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