Japan buys into Atlantis Group

By KARYN SCHERER

A Japanese venture capital fund has taken a 5 per cent stake in an Auckland information management company that is aiming to become a global force.

Atlantis Group, founded in 1996 by a group of 20-something friends, has enjoyed spectacular growth, attracting the attention of the Windmark Fund in Japan.

The fund, whose backers include Mike Takeda, the managing partner of e-business for Deloitte Consulting in Japan, specialises in information technology and investment management.

Atlantis Group managing director Michael Whittaker said yesterday that the deal valued his company at $32 million.

And he produced a statement from Mr Takeda noting that the opportunity to invest in information companies focused on the Asia-Pacific region "did not come available very often."

The deal caps a stunning year for Atlantis. Mr Whittaker said it had become a major force in database marketing and information management, taking on such established businesses as UBD and Dun & Bradstreet.

It has opened offices in Sydney, Singapore and Tokyo, but continues to run all its operations from Auckland.

Only one of its 140 employees is older than 30.

In June, credit management firm RMG took a 25 per cent stake in the group, with options to buy more.

In July, Atlantis acquired Data Magic, a company with 20 staff that specialises in pharmaceutical database management.

A subsidiary of the group, Visible Results, is behind the rewritable loyalty cards used by Mobil in its New Zealand service stations.

The "smart" cards use thermo-chromic printing to deliver instant messages to customers, as well as record their purchases.

Atlantis bought the licence for the printing and terminal technology from Kansas-based GraphiCard Systems for New Zealand, Australia and South-east Asia, and has since sold the system to other blue-chip companies such as Caltex in Singapore and Dymocks in Australia.

It has also signed a deal to supply the technology to Japanese restaurant chain TY Harbor.

Mr Whittaker said the company was excited about the opportunities in Japan.

"When it comes to marketing, Japan is where New Zealand was 10 years ago, so the upside for us is in our marketing side.

"Once Japan understands one-to-one marketing from a cultural point of view, it's set to explode up there."

The company recently received a Government grant to develop its own retail system and is eyeing deals in South Africa, Dubai, Hong Kong and Malaysia.