Software vendor GL TRADE has decided not to renew its agreement with Fermat, by which Ubitrade GmbH has distributed the Fermat risk management products in Germany, Austria and the Netherlands since February 2001. Ubitrade is being ceded to the Fermat Group from 2 January 2007.
GL TRADE says it and Fermat both agreed not to renew the distribution agreement, and that the Frankfurt-based employees involved in the distribution activity will be transferred to Fermat from the beginning of 2007.
“The distribution of the Fermat product line benefited from Ubitrade’s sales network and expertise, which has since been integrated into the GL TRADE Group,” says Pascal Froux, President of Fermat. “With more than 100 clients and presence over 23 countries, Fermat operates in Europe, Asia and the Americas and employs 180 staff. As far as Germany, Austria and Holland are concerned our current strategy is now to distribute our Basel II and ALM products directly, which explains the buy-out of
“The Fermat product line has generated an exceptional level of business since GL TRADE acquired Ubitrade in late 2004, although sales in Germany, Austria and the Netherlands were essentially non-recurrent and involved a large amount of consulting,” adds Vincent Burzynski, Group Managing Director of Front to Back Solutions. “GL TRADE will now concentrate on the development and marketing of its own software products.”
GL TRADE says the Fermat product line generated sales within the GL TRADE group of about EUR 10 million in 2006, nearly 80% of which originated with two major customers. In 2007, GL TRADE expected this product line to generate sales of EUR 5 million.
The GL TRADE group reported a turnover of EUR 135.3 million at 30 September 2006, up 2% compared to the same period in 2005. Excluding Fermat, which staged an exceptional sales performance in 2005, sales growth would have risen 4%.