By Phil Boeyen, ShareChat Business News Editor
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Saturday 28th July 2001 |
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The Australian Financial Review reports that Streamlink is blaming its demise on the spending habits of Australian IT managers, as well as the harsh capital raising environment.
Under the agreement between the two companies announced in April IT Capital was due to invest a total of A$2 million for a 23.5% stake in the company. The financial terms were for an initial investment of A$1 million and a further A$1 million if the company met agreed milestones.
Streamlink boasted a number of blue chip clients including Coca-Cola Amatil, Qantas Airways, and PricewaterhouseCoopers, and ITC's Simon Brown described the company as a driving force behind the development of the e-procurement sector in Australia.
At the time of the investment Mr Brown said ITC's decision to invest reflected confidence that the company has global potential.
However the AFR quotes Streamlink founder, Martin Fisk, saying the company had not signed a deal since October. He blamed the lack of progress on the risk-averse nature of Australian managers who relied on global consultants and research firms for advice.
It's understood that two parties have expressed interest in acquiring the company.
News of Streamlink's woes will not do much to assure ITC investors, having come just a few months after the company made a bullish statement regarding the investment.
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