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Bendata sets sights on CRM with GoldMine deal

By Tony Hallett

Published: Tuesday 20 April 1999

Bendata is to pay $83m for GoldMine Software in a deal which highlights the race to offer customer relationship management (CRM) solutions.

Bendata's flagship software product, Heat, is typically used by internal IT help desks. GoldMine is popular with sales and marketing teams for maintaining contact records and prospects, and is sold through the channel in Europe.

Tony Probert, managing director Bendata Europe, said: "Both sides of this deal are equally important, but it has been made with our eyes on the biggest growth opportunity over the next 3 to 5 years - CRM. Analysts are predicting compound growth of 50 per cent per year, which is second only to the Internet."

CRM involves the use of datawarehousing, computer telephony integration (CTI) and other technologies by companies trying to improve the ways they deal with clients.

Sandra Millhouse, a lead analyst at Ovum, said: "It's becoming more important to offer a unified solution. Bendata has the experience on the service side, while GoldMine's forte is sales and marketing - that makes for a good combination."

She said the company will target small to medium-sized businesses, leaving the high-end of the market to Siebel, Vantive and ERP stalwarts such as Baan, Oracle and SAP.

Bendata's Probert said the merged company will eventually go by the name GoldMine, even though Bendata parent company, Ixchange, is the buyer. He said GoldMine - the name of the company and product - is better known.