- Collaboration software provider IXUP (IXU) to purchase the entire intellectual property of Data Republic for $3 million, following its financial collapse
- This purchase price represents a 94 per cent discount to the almost $50 million expended by Data Republic to develop and deploy its technology assets
- These assets will complement IXUP's current technology and products
- The parties expect to complete the purchase within the next few days
- On the market, IXUP is up 3.03 per cent and is trading at 17 cents per share
IXUP (IXU) has agreed to purchase the entire intellectual property (IP) of Data Republic for $3 million, following its financial collapse.
The purchase price is a 94 per cent discount to the almost $50 million expended by Data Republic to develop and deploy its technology assets.
Like IXUP, the assets will provide a platform that allows the secure collaboration between discrete data sets.
IXUP's platform provides a secure data engine for working with sensitive information while encrypted, and Data Republic's platform focuses on the provision of a secure data environment for working with sensitive information while unencrypted.
Consequently, the assets will complement IXUP's current technology and products and, according to the company, the sale will position it as the leading Australian secure data collaboration provider.
"Due to Data Republic being a market competitor to IXUP, we have followed Data Republic’s evolution closely for many years," IXUP CEO Marcus Gracey said.
"While it is unfortunate that the Data Republic business was not able to achieve the necessary scale required to continue in its previous form and we empathise with the affected employees and customers of their business, we believe that with a new and reinvigorated commercialisation strategy and in combination with IXUP’s aggressive growth plan."
There is a strong potential for the assets to be applied to the global sports sponsorship and sports data segments, a focus area for IXUP.
IXUP intends to continue servicing all of Data Republic's previous and affected customers and is also in talks with previous employees about future employment opportunities.
The parties are expecting to complete the purchase within the next few days, subject to the satisfaction of certain procedural steps.
On the market, IXUP is up 3.03 per cent and is trading at 17 cents per share at 12:23 pm AEST.