Trade exchange sells out to rival

By KARYN SCHERER

The country's two main trade exchanges are joining forces to try to boost interest in barter as a way of doing business.

Itex, introduced to New Zealand by Robyn and Brian Bartram three years ago, confirmed yesterday it was selling out to its bigger rival, Australian-based Bartercard.

Bartercard was launched in New Zealand seven years ago and has signed up nearly 4000 members, most of whom are small businesses.

The acquisition will effectively give the company another 550 members in New Zealand, and follows the purchase last week of its main competitor in Australia.

It also follows a decision by the Queensland-based company two weeks ago to abandon its plans for a public float. It had hoped to raise $A20 million from the float, to help fund a move to online trading, but had been unsuccessful.

Its New Zealand managing director, Roy Netzer, said yesterday the decision to abandon the float would inevitably delay the company's plans to transfer to an internet-based service.

But it was determined to continue its aggressive plans for growth, which it would fund from cashflow, he said.

Mr Netzer said the merger would have the biggest effect in Wellington, where Bartercard had just 300 members.

It would also boost membership in Christchurch, but would have less effect in Auckland, where Bartercard already had about 1400 members.

Itex was refinanced and renamed Itex Tradebanc at the end of last year, after struggling to boost its membership. Its chief executive, Murray Clark, said yesterday it had approached Bartercard about a "friendly merger" after it realised there was room for only one main trade exchange.

"I'm of the firm opinion you've got to have critical mass and got to have sufficient members for everyone to trade with," said Mr Clark. "There's really only one company in New Zealand that can offer that and that's Bartercard."

Mr Clark said Itex's 15 representatives would be offered jobs with Bartercard.