Klopotek Purchases Global Turnkey

With the purchase of Global Turnkey Systems by Klopotek in September the book publishing software consolidation that started with IBS's (International Business Systems) purchase of Bookmaster and Media Services Purchase of S3 PubTech (the owners of CisPub) has continued.

On the positive side, Global Turnkey has gained access to the R&D resources of a much larger company. We expect that Global's clients will now have the opportunity to integrate their software with the contract, editorial, production mangement and title information management modules offered bye Klopotoek product - all features that were lacking in the Global Unison product.

Klopotek; a German company, has gained access to the project management staff of Global Turnkey and entre into the large publishers that use Global Software.

Overall, an excellent development for Global clients and Klopotek.

The downside to this purchase is that yet another book publishing software developer; the 3rd in 2 years has been acquired. In the past two years the number software vendors with 50+ clients and sales greater than $2M in the USA has declined from eight to five. Consequently we are seeing a reduction in the incentive for software vendors to negotiate a lower price.