Open Systems to enter UK market

The arrival of a US pretender to the accountancy throne has unitedrivals

US accountancy software firm Open Systems Holdings is set to shake Sage and Pegasus' grip on the channel with its launch into the UK and a flotation on the AIM stock market.

The #1.5 million to #2 million expected to be raised will be used to set up a UK headquarters with 10 staff, and to run a channel marketing campaign starting next quarter.

Ten dealers, including five Sage and Pegasus partners, have signed up with the firm, according to Open Systems. It claimed to have poached staff from rival firms, but refused to name employees saying the information was 'too sensitive' as they had not left their present jobs.

Brian Ella, MD of Sage dealer Kingdom Business Systems, welcomed the firm's move into the UK. 'It is hateful that we have to deal with Sage - the whole country needs an alternative,' he said. 'If Open Systems work well with the channel and have a user-friendly package then good, but if they're like Sage in their treatment of the channel then they can get lost.'

Faced with the threat of outside competition, Pegasus and Sage were in agreement for once.

Sage sales director Tom Maxfield said: 'Without a brand and channel, they'll struggle.'

Pegasus chief executive Jonathan Hubbard-Ford said: 'There are always other players which come and go. We've seen others shouting about coming into the UK, like Exact, and look at them - they are unable to get dealers.'

Traverse, Open Systems' desktop product, is positioned at the entry level of the modular market and uses MS Access as its database. A client/server version will be available next quarter.