- Acquisition critical to JustSystems’ strategy to diversify away from desktop productivity apps in Japan.
- Blast Radius had purchased XMetaL from Corel only 2 years prior to this transaction, so most buyers had already seen, and passed on, the opportunity to acquire the business.
- First Catapult transaction where neither company was US-based.
Overview
On March 7, 2006, Tokyo-based JustSystems acquired Vancouver-based XMetaL, a leading provider of XML authoring tools.
Prior to the transaction, XMetaL was owned by Blast Radius, which decided to divest XMetaL in order to focus on its core interactive agency business.
Significance
Catapult’s role
- Focused the marketing effort largely on “out-of-the-box” ideas, including companies in Europe and Asia.
- Made initial contact with JustSystems based on knowledge that they had a strong interest in the XML space, but only a fledgling R&D effort.
“We hired Catapult to find a buyer for our XMetaL division after we determined that it was no longer a fit with our strategic direction. Catapult exceeded our expectations on several fronts: not only did they find a great buyer for the division, but they also helped us manage a great deal of financial and legal complexity involved with the spinoff.”
