Hars Systems' subsidiary acquires intellectual property assets
from Intermezzo
Hars Systems Inc
HSS
Shares issued 15,796,296
1999-07-08 close $0.63
Friday Jul 9 1999
Mr. Kelly Blake reports
Hars Systems Inc., through its wholly owned subsidiary, VIP International Corp.,
has disclosed the purchase of the intellectual property assets of Intermezzo
Systems Inc. of Denver, Colo., through the signing of a binding letter of intent.
Intermezzo is a software development company that created a central reservation
system (CRS) (ResBook) for the hospitality industry. Additionally, Intermezzo
developed and operated an E-mail reservation delivery system (ResPop) for VIP
and was completing a hotel property management system (PMS) connection for
the two-way interface between most industry PMS and the VIP CRS. Further,
Intermezzo was developing a virtual Web-based PMS to rival other traditional
systems that depend on the acquisition of hardware and the installation of resident
software at the hotel central reservation office level. The Intermezzo Web PMS
will provide computer utility-type services to the hospitality industry. Hotel
property customers will subscribe to an on-line PMS and negate the need to
expend finances for equipment and software through Internet access to PMS
applications in a secure chain-specific environment.
Canadian Pacific Hotels purchased a non-exclusive licence to use the ResBook
CRS and operate this CRS today, while Pegasus Systems Inc. of Dallas,
contracted with Intermezzo for the development of somewhat unrelated software.
Intermezzo expended an estimated $3.5-million (Canadian) on the development of
these intellectual property assets and VIP has acquired the exclusive rights to use,
develop, market and/or resell these intellectual property assets at its sole
discretion. Those customers of Intermezzo that presently have a non-exclusive
right to the intellectual property will maintain their contractual rights to the
software.
VIP's president, Kelly Blake stated: "VIP has made a move to better secure its
position through ownership of key technological assets. Not only have we
acquired a system that will provide an integrated link to our customers but, we
now own an exceedingly valuable state-of-the-art central reservation system and
Web PMS product, which offer potential cost savings and more importantly,
significant revenue opportunity."
The Intermezzo intellectual property includes a nearly completed connection to
Pegasus' TravelWeb (www.travelweb.com) Internet site, which will expedite
VIP's listing on this premier travel channel. Additionally, through Pegasus'
relationship with Preview Travel (www.previewtravel.com) VIP will gain access
to this significant source of business.
Central reservation systems on the market today command between $200,000 to
$2-million in one-time license fees and 50 to 100s of thousands in annual
maintenance fees. Property management systems sell for one-time license fees of
between $20,000 and $100,000 and command thousands in annual support fees.
Bringing the reservation delivery system in-house will eliminate significant annual
transaction expenses called for in the former Intermezzo service agreement. The
revenue opportunities associated with ResBook and the Web PMS product could
exceed several million dollars annually. VIP has received numerous inquiries from
interested parties with respect to ResBook and the Web PMS applications. The
company will be carefully evaluating its strategic opportunities over the next few
months with respect to these products. |
