Local News

StrikeIron Expands Lineup, Adds Customers With Acquisition

Posted June 13, 2006

— StrikeIron

, a developer of web services, is expanding its lineup of services by acquiring the web services technology of an Arizona firm.

The acquisition is the first for StrikeIron. Financial details were not disclosed.

"This is strictly an asset acquisition," said StrikeIron spokesperson Jane Foreman, noting that no employees would be involved in the deal.

StrikeIron is acquiring the web services developed by DesertSoft as well as that company's customers. "It's in the hundreds," Foreman said when asked how many customers are involved.

DesertSoft's ecommerce, customer relationship management and online procurement applications will be made part of the StrikeIron portfolio. Among new applications acquired by StrikeIron is one for phone number validation, Foreman said. Another application is under development.

Scott Elder, chief executive officer of DesertSoft, said the sale would allow DesertSoft to concentrate on other aspects of its business. DesertSoft, which is based in Phoenix, focuses on fulfillment, shipping and etailing services. DesertSoft had already made its web services available through StrikeIron's Web Services Marketplace.

Bob Brauer, StrikeIron's CEO, said the deal is a sign of consolidation among web service providers.

"We've focused on the creation of added value and reduction of IT complexity from the utilization of external web services as a core business," Brauer said in a statement. "The addition of DesertSoft strengthens StrikeIron's role in the commercial web services eco-system and marks the beginning of consolidation toward a single marketplace in this rapidly growing industry,"

StrikeIron, which was founded in 2003, has raised nearly $5 million in venture capital, and has more than 20 employees.

"We are continuing to grow every month," Foreman said.

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