CEO Howard Koenig apparently “expects high-growth opportunities given the company now has a presence in Europe, North America and Asia-Pacific”, and “acknowledges initial ‘redundant costs’ will hit as the company, which has 130 employees, seeks to reduce duplication in areas like customer service and technology.” The article continues:
He explains: ‘BuildOnline was trying to create a sales organisation in the US. It no longer has to do that. We were trying to create a sales organisation in Europe and we don’t have to do that because they have one.’
The deal was completed after nearly eight months of negotiations. Koenig notes that combined revenue for Year-End June 2006 was approximately £8 million. CTSpace has offices in Austria, Dubai, France, Germany, the UK and US.
Once the duplication between the two businesses has been removed, Koenig believes the organisations will ‘balance out very nicely’. He expects that CTSpace will mutually break even for Year-End 2007 and start generating profit thereafter. ‘We’re actually hiring at the moment,’ he observes.