The UK division of ailing Network Imaging Corp, Herndon, Virginia, has staged a management buyout from its parent and will now trade under the name Kinetix Ltd. It gets to keep the parent company’s ImageXchange Office and ImageXchange EDM departmental document management software, the development of which the UK unit took over earlier in the year. Kinetix said it now has all the legal and operational rights to modify the document management software and exclusive rights to market it in the UK, with non-exclusive elsewhere. The deal, the value of which has not be revealed, suits Network Imaging, which, in the face of continued losses and despite a restructuring of the company and loss of 15% of staff last year (CI Nos 2,641, 2,558), is still finding a need to focus on its core, enterprise-wide products and to retrench geographically. In August, it reported second quarter losses of $16.0m, $11m of which was a charge from the sale of units and closure of German operations (CI No 2,725). Kinetix will concentrate on the UK market first, recruiting resellers and marketing to ultilities, corporates and government organisations, but expects to sell its products on the continent and in the US eventually. It expects turnover for its first year to top #14m and has offices in Northampton, Slough and Southampton.
Content from our partners
