National integrator Data #3 has sold its Microsoft Navision business unit to Eclipse Computing for an undisclosed amount.
The company had developed its Navision business practice over the past four years through acquisition and organic growth but was affected by difficult times in the ERP sector two years ago, according to company MD John Grant.
'It became apparent to us that for the business to get where it needed to get to - in terms of providing customers real options - it needed to be two to three times bigger than it was,' said Grant.
Data #3 had in the past looked for a joint venture partner to drive the business unit's growth without success. A decision was then made to sell it. Data #3 had been in discussion with Eclipse for the past six weeks, Grant said.
He claimed that the 'people and skill-sets' required in this market 'don't grow on trees,' adding that it was a 'very competitive market.'
Data #3's Navision business had 17 staff of which the majority would move across to Eclipse, Grant said. Data #3 would assist a small number of staff who were not moving across to find new jobs, he said.
The Navision business was one of Data #3 smallest business unit sales revenue and profit-wise, Grant said.
Eclipse's acquisition extends its mid-range Microsoft Business Solutions (MBS) offerings to cover the complete product range of Microsoft Axapta, Navision and Great Plains.
Data #3's MBS base of around 40 Navision customers would be able to transition the arrangements with Data #3 to Eclipse, the company said.
In conjunction with the sale, Data #3 would remain the preferred technology provider for Eclipse's Navision customers. In turn, Eclipse would be preferred ERP solutions provider, the companies said.
Data #3 shares were trading at $2.20 per share on the ASX on Monday afternoon.