Covata Ltd (ASX:CVT) intends to focus on its Eclipse business and build the company around content services, using the proceeds from the sale of SafeShare and leveraging data classification technology licenced from recently acquired dataglobal.
The company undertook four streams of activity in 2019, being the SafeShare business; SharePoint security business Eclipse; its intention to acquire dataglobal; and its future in content services.
Eclipse product validated
In his address at the company’s recent annual general meeting, Covata chairman William McCluggage noted the potential of the company’s Eclipse product had been validated by securing a major customer and that Covata had embarked on a broader strategy using the licenced technology.
The company sold its SafeShare business in 2019, which it had developed from being a standalone, online secure document vault to now providing integration with common Microsoft Office online applications such as Word and Excel.
Documents can now be securely shared and edited through the browser-based application.
Sale of SafeShare freed-up resources
McCluggage added: “Additionally, the team in partnership with UK-based Byzgen Limited, launched SafeShare Trust, which integrates blockchain technology into Covata’s existing data security platform to deliver data and access control, immutability and real-time auditability.
“The disposal of SafeShare was successfully completed in mid-July of this year.
“The sale has freed-up resources to allow management to focus on our Eclipse product along with the continued partnership with dataglobal.”
Content services complementary to Eclipse business
The Eclipse product was further improved this year, with Covata extending the solution to be able to provide greater security for documents stored in Microsoft OneDrive and SharePoint Online.
Covata announced plans this year to purse a transformational acquisition of German-based content services software provider dataglobal Gmbh.
McCluggage said the rationale for the acquisition was to push further into the broader area of content services which was complementary to the company’s Eclipse business.
Board supportive of content services strategy
The acquisition was not completed, with the prospectus withdrawn “due to market conditions, timing and the level of support”.
He added: “It remains our view that the dataglobal acquisition would have delivered Covata’s shareholders significant additional value.
“While the formal acquisition of dataglobal could not be completed, the board remains supportive of the strategy of moving into content services.”