Where acquisitions have become the norm among business software companies,
seeing one attempt to split in two could cause finance directors to question
what is going on at their IT supplier.
Coda is to split from its scientific IT arm SciSys, in a move that both
companies hope will make management of the two businesses much easier to handle,
with the creation of two companies and their own boards.
Dave Turner, marketing director at Coda, has played down fears that the split
will cause its proportion of operating costs to grow, eating into margins.
‘Operationally it’s business as usual. There are no significant increases in
Instead Turner expects the move to make it easier for Coda’s management to
focus more closely on just the one company, admitting that as CodaSciSys any
investment decision would have to be weighed up against the use of funds for the
other part of the business.
Essentially, Coda may have more cash on its own to invest in its own
products. ‘Customers certainly shouldn’t see any negative effect,’ Turner says.
The two companies will be listed on AIM, subject to the approval of
shareholders at its EGM in August.
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