02 January 2003 | Robin Parker
Collaborative software company Epicor has completed the purchase of struggling e-procurement specialist Clarus.
The $1 million deal, negotiated over three months, gives the California-based firm a wide-ranging package of e-procurement, online sourcing and invoicing, and payment solutions.
Epicor is retaining Clarus's research and development, support and sales staff to develop and expand the products.
The purchase extends a two-year partnership in which Epicor deployed Clarus's tools in mid-market companies. It also builds on their co-development of the Microsoft.NET platform.
Clarus was put up for sale in autumn last year after its UK and Canadian divisions shut down in August.
The company blamed difficult market conditions, which caused it to post a pro forma net loss of $3.7 million in the second quarter of 2002.
Epicor has more than 15,000 customers worldwide and three offices in the UK.
Its existing portfolio includes supply chain management, financials and collaborative commerce applications.
John Hiraoka, vice-president of marketing and corporate development at Epicor, said the acquisition will cement its position in helping small and medium-sized companies to automate their procurement.
"Mid-market customers are looking for this type of end-to-end software but it's not often affordable. By integrating Clarus' applications with our solutions, we aim to make it easy for them."