Collapsed Data Republic finds white knight

IXUP has bought the collapsed technology business Data Republic from administrators for $3m.

Data Republic CEO Danny Gilligan. Source: Supplied

Collapsed tech player Data Republic has been snapped up by ASX-listed IXUP for $3m, concluding several weeks of bidders circling the business.

The deal was heralded by IXUP as priced at a 94 per cent discount to the almost $50m spent by Data Republic to develop and deploy its technology assets.

The acquisition of the Data Republic tech assets sees IXUP gain access to a list of high profile clients and intellectual property behind the Melbourne-based business.

The acquisition by IXUP comes after the collapse of Data Republic in Mid-May after the business was unable to secure additional funding or find a buyer.

The business, headed by Danny Gilligan and Paul McCarney, had been seeking up to $45m in additional funding for its loss-making operations.

McGrathNichol were appointed to the business on its collapse.

The open data player had been backed by a bevy of big financial players, including ANZ Bank, Westpac, NAB Ventures, Singtel Innov8, Qualgro and Reinventure.

IXUP chief executive Marcus Gracey said he had closely followed Data Republic for many years and expected the business would flourish under new ownership.

“While it is unfortunate that the Data Republic business was not able to achieve the necessary scale required to continue in its previous form and we empathise with the affected employees and customers of their business, we believe that with a new and reinvigorated commercialisation strategy and in combination with IXUP’s aggressive growth plan, the Data Republic Technology Assets will demonstrate significant value,” he said.

The deal sees IXUP gain access to Data Republic’s two key platforms Sandbox and Fusion Studio.

Mr Gracey said Data Republic would add valuable and well developed technology assets to IXUP’s technology stack.

“Given that the purchase price represents such a significant discount to the capital expended by Data Republic to develop and deploy the assets being acquired, we are confident that we will generate significant commercial returns from this modest investment,” he said.

“IXUP intends to continue to service to all of Data Republic’s previous and affected customers, where possible, and we are also in dialogue with the previous Data Republic employee base to explore how we might provide future employment opportunities.”

The $3m deal signed on Saturday is subject to procedural steps relating to the extraction and back-up of Data Republic technology assets.