Alydaar moves out as Chase sells its stake

Chase Technology has pulled out of Alydaar Software Europe after selling its 50 per cent stake in the company to the parent group for #3 million.

Alydaar Software Europe ? which provides year 2000 software for mainframe computers ? has been run as a joint venture since December 1996 between Alydaar and Chase. Chase has invested #250,000 in reselling its products over the past year.

As a result of the sale, the 12-strong Alydaar team is moving out of Chase?s headquarters and is looking for premises in the Epsom area.

Chris McAuley, managing director at Chase, said pressure for the move came from the US because the division among its salesforces in the US and Europe was becoming a problem as many of its client companies wanted one point of call. He also pointed out that Chase felt it was an offer too good to refuse.

McAuley said the deal will make a significant contribution to Chase?s balance sheet, ahead of its plans to float the company in 1998.

The company is also looking to acquire a niche market software company in the fourth quarter of this year.

He claimed that at least 20 Fortune 500 companies were using the Alydaar software and that Alydaar had an estimated turnover of $250 million for this year despite a negative balance sheet last year. Its flagship product, Smartcode 3, started shipping in February.

Since the move was announced the value of the shares has more than doubled to six million pounds, due to the announcement of deals with Aer Lingus and 3M.