Freecom loses two top execs

Chief executive Michael Williams and commercial director Bodo Heiss have both resigned from Freecom.net just months after the company caused chaos in the accounting software channel with its acquisitions of Pegasus and Systems Union.

Chief executive Michael Williams and commercial director Bodo Heiss have both resigned from Freecom.net just months after the company caused chaos in the accounting software channel with its acquisitions of Pegasus and Systems Union.

Freecom will change its name to Systems Union Group this week. Paul Coleman, currently chief financial officer, has replaced Williams.

Richard Gibb, a Freecom representative, said that the departures mark the group's decision to mature from an entrepreneurial startup into a profitable business. "The focus of the business is changing, Michael likes to set up companies and move on. Paul will bring us more stability," he said.

Keith Birch, managing director at Systems Union reseller Touchstone, said Williams's aggressive management style had not gone down well. "Just because a child needs to take its medicine there is no need to crack its teeth to do it," he said.

Birch questioned whether Coleman would be a permanent replacement for Williams. "You have to query the logic of putting an accountant in charge of a software firm. He's not going to put forward any inspirational ideas on the software market."

John Dixon, chairman of Pegasus support group Admit, said the resignations put a question mark over the company's commitment to Williams's and Heiss's strategy. "They were the key orchestrators of the three acquisitions, and although Pegasus, Systems Union and Oneview will survive, I doubt they will all remain a part of Freecom."

Freecom used the capital from its flotation last year to acquire Pegasus for £55m in February, ecommerce enabler Oneview.net for £135.9m in March, and Systems Union for £31.9m in May. Williams's last business, Ferrari Holdings, went into receivership in 1991 after a series of ill-fated acquisitions.

Resellers have reacted badly to Systems Union's decision to change the Pegasus logo and rename its Opera32 product Opera 2. Roger Neale, managing director at Pegasus reseller Perkeo, said: "It's going to cost [resellers] a lot of money."