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Dec 18 2006

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CTSpace: initial redundancies

 

According to a Growth Business article by Marc Barber, the merger of BuildOnline and Citadon to create CTSpace (see previous posts from here), will result in some redundancies.

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.

Permanent link to this article: http://extranetevolution.com/2006/12/ctspace_initial/

3 pings

  1. De Kieviet’s Gambit – more CTSpace ‘spin’ | Extranet Evolution

    […] where it adds BO and Citadon “provide roughly a 50:50 split”. Only last month (see CTSpace: initial redundancies), CTSpace CEO Howard Koenig said the combined business had combined revenue for Year-End June […]

  2. CTSpace raises $5.3m | Extranet Evolution

    […] ← CTSpace: initial redundancies BIM market – major merger […]

  3. CTSpace put to the Sword | Extranet Evolution

    […] £8m figure has some significance as it was figure that Koenig gave a year ago (see post) for combined revenue to year-end June 2006 – so there has apparently been no growth since […]

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