Unisys globalises Sausage machine
By CAROLYN BATT
2000-10-05 00:28:17
Sausage Software[OTC BB:SSXHF]* expects at least to double its revenue in the next two years through an alliance with United States-listed Unisys Corporation. The two companies have signed a heads of agreement to develop and deliver e-business solutions to their combined client base. If the deal operates as Sausage hopes, it will open up significant new markets for the Australian company.
"Unisys has 35,000 people in 120 countries. Sausage has 1200 people in three or four countries," Sausage's principal of strategic development, John Glenn, said yesterday. "So, immediately, our access to market is orders-of-magnitude bigger."
Sausage will be able to tap into Unisys' market, worth $US7.5 billion ($A13.75 billion) annually, he said.
"If I can't more than double our revenues within 18 months or two years, I'd be very surprised."
The announcement was greeted well by investors. Sausage shares reaching an intraday high of $1.59 before closing up five cents at $1.53.
The partnership is founded on an agreement by Sausage to provide interactive and business consulting services to Unisys clients worldwide - what Mr Glenn described as the "wow" factor - while Unisys will provide hosting services and back-up infrastructure and delivery.
Depending on the identity of the client, one partner was likely to act as a subcontractor to the other, Mr Glenn said. "I think in the coming weeks you'll see some solid examples of what it will look like."
The alliance will focus on service delivery to four markets: Australian small to medium enterprises and, globally, the transport, education and interactive development sectors.
Sausage chief executive officer Lloyd Roberts said the relationship with Unisys was part of a strategy "to align Sausage with key global players and consolidate our services to increase profitability and shareholder value through controlled growth".
He said it would complement and add value to Sausage businesses.
This story was found at: theage.com.au
*FYI, OTC Quotes for Sausage Software can be found at MSN & redchip.com (bloomberg does not recognize symbol or company) |
