It's official. CorMine has purchased Perfect Commerce and has even adopted its name. But the headlines and news stories will only tell you so much. Inquiring minds should ask the hard questions:
- Why did CorMine ask much of the Perfect management team to leave immediately following the deal? Only a handful of Perfect's former executives remain. Usually, executives depart after a transition period -- not immediately.
- How does CorMine plan to continue down the massive product rationalization path that Perfect started to embark on (consolidating nearly a dozen different technologies and platforms)? Where are the resources and expertise to do this?
- How long will companies paying maintenance revenue to Perfect tolerate products which have essentially stalled in the innovation cycle?
- How does CorMine plan to go to market selling both software and services successfully -- something that companies like Ariba have struggled to do over the years, failing to keep pace with the growth rates of fast growing providers focusing only on software or services (not both).
I could go on with these questions -- and would encourage Perfect customers to ask the same ones -- but I don't have time over the next couple of days to dig into at the level that I want to. Further exploration will need to wait until next week on these virtual pages. But in the meantime, I wish CorMine the best of luck in this deal. Perfect's last investors, Apax, lost most of their $30 million investment. At the time, I told them not to do the deal in an unpaid due diligence call (you know what they say about free advice, I guess). But Apax made the investment anyway and lost nearly all of it in less than 24 months. Let's hope CorMine does better than the Wall Street geeks on their deal ...