December 8, 2003, 12:00 AM

CommercialWare makes another acquisition

CommercialWare, provider of cross-channel retail management software, has acquired OrderMotion.

CommercialWare Inc., provider of cross-channel retail management software, has acquired Transaction Smartware Inc., better known among its customers by its product name, OrderMotion. It is CommercialWare’s second acquisition this year.

OrderMotion offers ASP-based services in order management, CRM and fulfillment systems for small retailers. CommercialWare until now has focused on mid-sized and large businesses. The acquisition moves the company into a new market and gives it an early foothold with growing companies, Donny Askin, CommercialWare CEO, says. The acquisition also moves CommercialWare more strongly into the ASP business, Askin says. “We want to make it easy for a company to do business with us, whether it’s by traditional licensing, using an ASP or using a managed services model,” Askin says.

OrderMotion will operate as a division of CommercialWare and its CEO president and co-founder Niels Christensen will become vice president of ASP solutions at CommercialWare. CommercialWare is retaining the OrderMotion staff.

With the entrée into a new market, CommercialWare will have some adjustment in its approach to customers, Askin says. Until now, the company has offered a high-priced product, starting at about $100,000 for licensing fees and going above $1 million, and thus has been a high-touch company in customer service. OrderMotion customers pay $10,000 to $30,000 for the first year of operation, which will require more self-service customer service, Askin says.

OrderMotion has been growing phenomenally, Askin reports, growing from 20 customers to 100 in just the past year. He says the company’s revenue doubled in just the seven months that CommercialWare discussed acquiring it. It is adding as many as six customers a month.

“With the addition of OrderMotion, CommercialWare now offers retailers and direct marketers of all sizes the features, benefits and functionality of retail management software systems that were once only available to industry giants,” Askin says.

In January, CommercialWare acquired Capture.Net Technologies, developer and marketer of point-of-sale and retail back-office systems for mid-market retail chains.

 

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