Magic Software Sells Off CRM Application Business
June 19, 2006 Timothy Prickett Morgan
Magic Software, a provider of development and application integration tools for the OS/400 market, last week said that it has sold off its customer relationship management software assets to another company, called eContact Software.
Magic Software announced its CRM software in August 2001 in an effort to latch on to the craze for CRM software at the time. Remember when Siebel Systems was the next best thing to SAP? There were many players in the CRM space, and the people behind eContact Software, which appears to be a new company, plan to use it as a front end to telecom billing systems. eContact Software is also licensing Magic Software’s Enterprise eService middleware and will be using it to support the CRM software, which means when eContact makes money, Magic makes money.
“This move is one further step in executing our refocusing strategy on our core products, with the added benefit of creating a strong new technology partnership and channel,” explained David Assia, chairman and acting chief executive officer of Magic Software. “I have no doubt that the talented team that leads eContact company and the substantial knowledge it has accumulated in the field of CRM, cellular, and telephony will be a strong asset to our customer base and would enable the company to become an important and dominating player in the world, and in Israel in particular.”
The people behind eContact Software came from a company called Bizware Software Solutions, which was acquired by telecom expert Marconi-UK a few years back, which was in turn eaten by Ericsson this January.