Australian secure data software company Ixup has acquired the assets of the recently collapsed data-sharing startup Data Republic for $3 million.
Backed by the likes of Australian banks ANZ, NAB, Westpac and Singtel Innov8, Data Republic developed digital infrastructure that lets companies exchange data safely and securely. The company called in administrators in mid-May after a failed capital raise.
Ixup said the acquisition of the assets complement its current technology and products and also positions the company as the technologically leading Australian secure data
collaboration provider. Ixup said it would also continue working with Data Republic’s previous customer base.
The company added that the $3 million purchase price represents a 94 percent discount on the almost $50 million spent on developing and deploying Data Republic’s technology assets.
“Due to Data Republic being a market competitor to Ixup, we have followed Data Republic’s evolution closely for many years,” Ixup chief executive 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, Data Republic’s technology assets will demonstrate significant value.”
Gracey added that the assets add a well-developed, valuable and complementary product set to Ixup’s own offerings and that the significant discount would allow Ixup to generate “significant” commercial returns.
“IXUP intends to continue to service to all of Data Republic’s previous and affected customers, where possible, and we are also in dialogue with the previous Data Republic employee base to explore how we might provide future employment opportunities,” Gracey said.
Ixup expects the acquisition will be completed “within the next few days”, subject to the satisfaction of procedural steps relating to the extraction and backup of the technology assets to facilitate the transfer.