Westborough, Mass.-based Applix has sold its CRM business to Platinum Equity, LLC in Los Angeles. The transaction will allow Applix to focus on the business performance management space, according to the company.
Applix's Web-based CRM suite features four different products based on its iEnterprise platform, including software for sales, service, help desk and service management. Applix currently has 1,000 CRM customers, many in the midmarket.
For now, Applix vice president of marketing Dave Menninger said customers will use the same contact numbers and Web site when they call for support. As part of the deal, 55 Applix employees working on its CRM business will transfer over to Platinum.
This morning's announcement comes just a few days after Microsoft released its inaugural midmarket CRM software. Menninger called the timing "ironic" but said the Redmond giant's entry into the market had no impact on Applix's decision to sell.
"When we look at the market opportunities, the number of large, established vendors in the CRM space and the percentage of the market owned by those vendors, it is probably greater than in the business performance management space," Menninger said.
Platinum Equity specializes in acquiring technology companies and has holdings in the software, information systems and data converged network communications markets. It is a $4 billion company with 6,000 worldwide customers.
Platinum paid $8.75 million for Applix's CRM business, $5.75 million in cash and also assumed $3 million in Applix debt.