The owner of Cdstar.com, EstarOnline, aims to license its e-commerce technology internationally, following approaches from a North American credit card processing company.
The Christchurch-based e-commerce company is negotiating a deal but has signed a non-disclosure agreement preventing it from naming the North American party.
EstarOnline CEO Matthew Darby says although the company wasn’t actively looking to license its software, the approach presents an exciting opportunity. “The potential in the North American market is huge. Considering the explosion of online purchasing in North America, it could represent a significant revenue increase for EstarOnline.”
In the negotiations EstarOnline is looking to sell its shopping card and product management technology which it developed in-house for its flagship online retail Web site. The technology will be offered as a complete solution which companies can use "out of the box" to set up e-commerce Web sites.
Darby says: “A lot of people have asked me why Cdstar.com didn’t sign up with a fulfilment house in North America and use their technology.
“Quite simply there wasn’t any value for us to do so. For one, it would have meant that all our music would have to come from North America - meaning significant delays in delivery to our customers and a limited music selection. North American companies are focused on the North American music market. Clearly that would mean virtually no local music if we had chosen that path,” he says.
Meanwhile EstarOnline has suspended trading pending a share offer aimed at raising up to $15 million. Darby says the capital will be used to further develop Cdstar.com.