IQ resellers told takeover will not disrupt future

Information Advantage has confirmed that it will continue to work with the channel partners it inherits following its acquisition of IQ Software.

IQ Vars expressed concern that the $65 million deal would spell trouble for the vendor's indirect model, but both companies have stated that because there is no overlap in product lines, the merged operation will retain its channel focus and concentrate on the SME market.

IQ operates about 60 per cent of its business through Vars and third-party packaged application firms such as JBA and Walkers International.

It also has an OEM strategy. In contrast, Olap vendor Information Advantage only sells direct.

Rick Parker, vice president of marketing at Information Advantage, said: 'We sell at a high level and do mainly interactive analysis, while IQ sells query and reporting tools to workgroups and departments. This is a lower price, higher volume market, but we can now move in from both angles.'

IQ's UK marketing director, Donald MacDonald, agreed. 'The acquisition makes IQ's business more stable,' he said. 'We have doubled the size of the company and will be able to invest more in R&D.'

He also confirmed there would be no redundancies as a result of the takeover.

Charles Chitty, president and chief executive of IQ, will join the Information Advantage board and become senior vice president of vertical business intelligence applications.

Information Advantage has not yet decided how it will brand its product family, but the two product lines may also continue to be sold as separate entities.

Nigel Pendse, analyst and author of The Olap Report, said: 'This looks like a more logical deal than Arbor's acquisition of Hyperion, as these two companies largely complement each other.

'The enlarged Information Advantage will have revenues of about $55 million and about 420 staff. This still leaves it slightly behind Microstrategy, its main competitor.'