Day Software, a web content management system vendor and provider of the Communiqué CMS, has sold off its UK agency services subsidiary, MarketingNet, to WAA, an advertising company. Day Software says that the sale is part of an operation to refocus its UK operations to the core Web CMS business and drive UK expansion through a channel-driven model.
Day Software has acquired MarketingNet in October 2000. All existing customers of MarketingNet will stay with MarketingNet.
Erik Hansen, CEO of Day Software, said: "As the agency services business is not part of our core business, we are delighted that we have been able to complete the sale of MarketingNet to WAA as this ensures a good future for MarketingNet's customers as well as ensures that as many staff of MarketingNet as possible have been able to keep in employment."
As a result of the sale completion, Day is anticipating non-cash charges in its 31st December 2008 results relating to Goodwill, as well as cash charges relating to discontinuing operations such as leases, staff costs and legal costs. Day Software’s core operations in the UK carried out by Day Software Ltd are not affected by this announcement.
It is really a non-issue for Day's customers who use CQ and CRX. Per Kevin Cochrane, Day's CMO, MarketingNet was a "legacy agency subsidiary in the UK, and it just made more sense to spin it off." Makes sense, Day is not in the agency business after all.
The big benefit, of course, is the fact that Day's UK management team can "focus squarely on CQ and CRX and building the channel-driven model."
We also told you about Day's quite ambitious 2009 plans, which Day's CMO Kevin Cochrane presented to us in a much excited fashion. So, let's see how far along (and how successfully) the vendor makes it through the big 2009 to-do list.