BASS Sells Out of Star Information Systems
BASS Software Ltd., global provider of software for fleet and rig management, will use the financial resources it freed up after selling itself out of Star Information Systems (SIS) to continue to invest in its own business by pursuing new markets and developing new products.
In 1999, BASS bought a 34 percent stake in SIS, a supplier of maritime software, as an opportunity to complement its product assortment and geographical reach. Since then, however, a strained liquidity situation and very low profit margins have prevented SIS from paying out dividends and investing adequately in product and technology upgrades.
Because of SIS’ poor performance and its need for major funding over a long period of time to upgrade its products and technology platform, BASS approached the other shareholders asking to discuss an exit strategy, something they were not willing to do. When SIS asked shareholders for additional funding in June, BASS saw this as a divestment opportunity and agreed with other shareholders in September to sell its stake in the company.
BASS already invests substantially in product development, with about 25 percent of revenue earmarked for this purpose, and the fresh capital will further bolster these efforts. The extra funds will also allow BASS to pursue new markets and customers, including attractive offers to upgrade to BASSnet – a more comprehensive and modern solution.