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Impi Linux sold to Business Connexion
Cape Town, April 11, 2008: Impi Linux, a South African open source solution provider and an official Ubuntu representative, has been sold by HBD Venture Capital to Business Connexion, a leading integrator of competitive, innovative and practical business solutions. The sale was effective as of March 1, 2008.
Thomas Black, Impi Linux general manager said that large IT companies like Business Connexion are starting to acknowledge the important role that free and open source software is playing. "The company was looking to invest in a South African company which could provide this capability and Impi Linux has the strongest presence in this area." He said that Impi Linux had a range of existing contracts with government and that made it an attractive purchase for Business Connexion.
From an HBD perspective the sale makes sense because of the requirements of the Open Source business model. "Open Source businesses make profit from servicing clients, not selling to them. They therefore needa strong client service team and significant infrastructural investment. Business Connexion’s size is able to support the growth needed by Impi Linux," said Black
Eben van Heerden, investment manager at HBD Venture Capital said that it had become increasingly obvious that Impi Linux would need more than venture funding to succeed as a company: Open source business models are fairly complex; the real revenue is generated from services, although product development remains a very important, and expensive, loss leader. While Impi Linux has worked at developing and refining its product offering, to successfully take this to market requires well established client relationships, project management expertise and existing projects. Business Connexion can provide this environment, giving the Impi Linux team the best possible chance of success."
Van Heerden said that Mark Shuttleworth, the founder of HBD, remained completely committed to Ubuntu and Open Source and that he wished both Impi Linux and Business Connexion luck in their efforts to provide free software as an offering in South Africa.
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