It is like GM buying Ford... they are both producing similar cars but their production lines are not compatible. Smoove products may be written in different languages IE java or PHP and pexa may be in csharp who knows. Also they may have different database structure. It is going to cost double to maintain both platforms.
Sometime in the future they have to decide which platform to keep and sell to new customers. Existing customers need to be converted overtime to new prefered platform.
Advantages they gain out of this merger is critical mass in UK, some IP, one less competitor and reduction in marketing budget. Risk high cost maintaining two platforms, staff exodus and may produce new competitor, losing existing clients, management time wasted on integration and learning new platform. Only time will tell...
imo & dyo & glts
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- Ann: Presentation - UK update and proposed acquisition of Smoove
Ann: Presentation - UK update and proposed acquisition of Smoove, page-7
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