ASX-listed data security company IXUP Ltd (ASX:IXU) has scored a software bargain from the administrators of failed tech startup Data Republic, buying the data exchange’s intellectual property and IT for just $3 million.
The purchase price represents a 94% discount to the almost $50 million Data Republic spent building the platform. The acquisition came from a rapid-fire, contested sale process commenced by the administrators just three weeks ago.
Data Republic was placed in voluntary administration in early May after failing to find an additional $21-35 million from institutional investors to keep the tech startup, founded in 2014, afloat.
The venture previously raised more than $30 million from prominent investors including ANZ, Westpac’s Reinventure, NAB Ventures, Singtel Innov8, Qantas Loyalty and Singapore Airlines and had offices in Sydney, the US and Singapore.
IXUP said Data Republic technology assets complement its current tech and products and will be used to accelerate execution of IXUP’s strategic focus on the sports data market.
The company said it plans to continue to deliver services to Data Republic’s previous and affected customer base where possible and as part of the sale, is also talking to former Data Republic employees about potential jobs.
CEO Marcus Gracey said they’d been following Data Republic’s evolution closely as they saw the business as a competitor.
“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, the Data Republic Technology Assets will demonstrate significant value,” he said.
“Given that the purchase price represents such a significant discount to the capital expended by Data Republic to develop and deploy the assets being acquired, we are confident that we will generate significant commercial returns from this modest investment and breathe significant life back into the Data Republic Technology Assets to fulfill their full potential.”
IXUP signed the acquisition deal on Saturday and expects to complete the sale within the next few days, with a sunset date of July 1. The $3 million (less agreed deductions) will be funded from existing cash. The acquisition includes the intellectual property of Data Republic, together with technology hardware and associated books and records.
Gracey said that combining the two data platforms creates a compelling “one-stop-shop” for corporate data collaboration needs and brings to IXUP an “out of the box” solution that integrates with the company’s existing product suite.
He said there’s strong potential for the Data Republic tech to be applied to the global sports sponsorship and sports data segments.