Altris Software looks across the pond for new ownership

In a complicated arrangement, South African IT company Spescom Ltd. has invested $4 million in document management vendor Altris Software ("Altris").

Spescom has purchased 2 million shares (17%) of Altris stock for $1.8 million and will pay Altris $1 million. Spescom will also invest $1.2 million for 60% ownership in Altris' U.K. subsidiary Altris Software Ltd. ("ASL"). Altris will match Spescom's ASL investment with $400,000 of its own, retaining a 40% interest in the subsidiary. Spescom will also gain a seat on Altris' board of directors.

Subject to meeting certain minimum royalty requirements, ASL will become the exclusive worldwide distributor for both Altris and Spescom's EMS 2000 configuration management products, excluding North and South America and the Caribbean. Altris will be the exclusive distributor for EMS 2000 in the Americas.

The agreement includes other stipulations, including the development of a $200,000 escrow account and a 1 million-share bonus to Spescom -- increasing its stake to 24% -- if Altris' shareholder lawsuit settlement isn't resolved by September 30, 1999.

Altris and Spescom have shared customers in British Nuclear Fuels, Bombardier and London Underground, according to Altris CEO Roger Erickson. The new arrangement is a natural progression of that relationship, and "will provide additional new opportunities for Altris," he said.

The investment in Altris and ASL is part of Spescom's plan to become a leading international player in the IT industry, according to Spescom chairman Tony Farah.

Erickson added that the extra capital "will be of significant help" as Altris prepares to market and sell its new Altris EB document management software.

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