INTERNET and email monitoring software developer WebSpy Ltd will utilise its existing sales infrastructure to launch the products of a new partner company into the tough US and European markets.
INTERNET and email monitoring software developer WebSpy Ltd will utilise its existing sales infrastructure to launch the products of a new partner company into the tough US and European markets.
WebSpy has joined forces with Melbourne-based network optimisation specialist Exinda Networks in a deal under which both companies’ products will be sold side by side as a complementary offering through Web-Spy’s London and Seattle offices.
WebSpy founder and CEO Jack Andrys said the deal was a win for both companies.
“At a time when exports of locally developed IT solutions have slumped to a 10-year low, we are leveraging our own international infrastructure to bring another world-class Australian technology solution to the international market,” he said.
“While Exinda will benefit from our established infrastructure and customer base in the United States, we will be able to leverage this infrastructure to offer an additional and complementary product set to our customers.”
Mr Andrys said Exinda’s offering was complementary to WebSpy’s because while WebSpy monitored user behaviour on the network, Exinda’s products monitored traffic and provided tools to optimise network traffic.
Exinda Networks executive director Anthony Bodin said the deal would help the company tap in to the growing need for network optimisation.
“Our assessment of the market is that it is growing for this type of technology,” he said.
“In the past 12 months growth has been in the vicinity of 40 per cent and we are certainly growing off a low base and can take advantage of that.
“It’s a very exciting time for us as we develop a number of relationships, both domestically and internationally.”
Under the terms of the deal WebSpy will receive 50 per cent of revenue from the sale of Exinda products, while Exinda will gain access to WebSpy’s established international sales infrastructure.
“They provide the products and we provide the sales,” Mr Andrys said.
He said that deal would allow WebSpy to assess Exinda’s products and assess the possibility of the company taking a stake in Exinda at a later date as part of its continuing expansion plans.
WebSpy is also expanding its Perth operations – where its development division is located – and will move to larger premises before the end of the year. The company also plans to take on more staff in 2004.
“We have spent $6 million in three years to establish our international distribution,” Mr Andrys said. “Our overseas networks continue to expand and we are one of only about three companies in this field.
“By the end of 2003-04, we will have 3,000 active users, 90 per cent of them overseas.”
However, after establishing a strong international base, Mr Andrys said the company was now looking to expand its Australian distribution network.
WebSpy began life in 1994 as a Perth-based information technology consultancy and software development business called Netlink Pty Ltd.
In 1999 the business was bought by WebSpy Ltd, formerly Livingstone Group Limited.
WebSpy now turns over $2.5 million annually and was featured at number 35 in this year’s BRW Fast 100.
