Hitchin, Hertfordshire-based Software Generation International Ltd, which called in receivers KPMG Peat Marwick McLintock, on Monday, (CI No 2,089) suffered because of dwindling demand for IBM Corp mainframe software. But the rot set in when the various US companies for which the firm distributed computer-aided software engineering tools decided to withdraw their business. Managing director Vic Morris, former Cullinet Software Inc senior vice-president of international operations, set up Software Generation in 1987, with the idea of selling US-sourced CASE software for IBM large systems into the UK. His first deal was with Rockville, Maryland-based Sage Software Inc to sell its Sage Application Productivity System (CI No 713). This fell through after Sage merged with Index Technology Inc to form Intersolv Inc in December 1990 (CI No 1,580). By the following December, Intersolv had paid Morris UKP3m to get out of the contract (CI No 1,818). The same happened with Palo Alto-based Aion Corp’s Aion Development System expert system development environment. Aion merged with Waltham, Massachusetts-based AI Corp in October 1992 to from Trinzic Corp (CI No 2,020). It subsequently withdrew its business. And the final blow came, when a few months ago, ViaSoft Inc – which as far back as July 1989 had given Software Generation the exclusive distribution rights to its suite of Cobol maintenance modules, Via/Center, (CI No 1,218) – set up its own UK branch office in Welwyn Garden City. It also no longer required the company’s services.
Consultancy and training company
According to John Proctor, former Software Generation sales manager and a current employee of ViaSoft, the latter is currently negotiating with IBM to take on Software Generation’s distribution rights to AD/Cycle products. So, by the end, the company was left with only Pittsburgh, Pennsylvania-based Guidance Technology Inc’s Choreographer object-oriented graphical user interface builder for client-server applications (CI No 1,818) – although sources say, it had no customers for the thing anyway; a few low-value personal computer-based Sage products; and a Liverpool-based consultancy and training company for personal computers, which Software Generation ironically bought from receivers itself around August 1992. Tony Thompson, one of the receivers at KPMG, said the training business was, in fact, the jewel in the company’s crown, and a number of people had already expressed an interest in buying it. Bids are expected in the next couple of days. He added that attempts are being made to sell the business as a going concern, but he is not optimistic about the outcome. The market has changed dramatically, he said, and there is no longer any potential for distributing Software Generation-type products. Vic Morris, is said to have realised this a couple of years ago, and had been looking for joint ventures with US software companies as the way ahead, but to no avail. Although some administration staff have already been handed their notice, Thompson said that the core business will remain intact for the time being in case a buyer turns up. As for Software Generation’s undisclosed stake in Guidance Technologies, and its 50% equity holding in Guidance Europe (CI No 1,818), which was part of the Choreographer distribution deal (mentioned above), he claimed that as yet no decision had been reached.
