Britannica Acquires Blue Chip Software
Blue Chip Software, a Canoga Park maker of computer programs that teach business skills, was acquired by Encyclopaedia Britannica Inc. for an undisclosed price, the companies announced Monday.
For the venerable Chicago encyclopedia publisher, Blue Chip represents a further expansion into the computer business. The company’s Britannica Learning division bought two other educational software companies in 1985.
For 3-year-old Blue Chip, the deal should bring the financial strength to aggressively market its software, said Modie Katz, chairman of Van Nuys-based Soft-Kat, one of the nation’s largest software distributors. Katz praised Blue Chip’s software but said her firm has not sold much of it.
Not ‘Enough Muscle’
“They didn’t have enough muscle, enough financial resources, to provide the advertising and marketing,” he said.
Blue Chip, which is privately held and does not disclose sales or profits, began as a partnership in 1982 between James Zuber, Robert Slapin and his wife, Ilene Slapin. Zuber developed all of the software.
Robert Slapin, the company’s president, said Monday that the original partners retain “an interest in the future of the company” and will continue to run the business as a subsidiary of Britannica.
As a result of the acquisition, however, Blue Chip’s manufacturing operations are being merged with those of other Britannica software companies. That move has cut Blue Chip’s work force of 15 to five.
“We have been a nice little software company for a long time,” Slapin said. “We were looking for a partner that would make us a nice big software company.”
Blue Chip’s main products are computer programs that simulate stock trading, commodities trading, real estate speculation and financial planning. Its best-selling program, Millionaire, retails for up to $50. More than 100,000 copies of that program have been sold.
Mock Stock Dealing
Millionaire lets computer users simulate buying and selling 15 stocks in five industries. Decisions are based on trends and news items included in the program. As the user builds net worth, the two-hour game expands to include the more sophisticated strategies of buying on margin and investing in stock options.
Britannica Learning President Stanley D. Frank said Blue Chip’s programs will be aimed at four main markets: adult professionals, high school and college students, corporate training and the financial industry.
Frank joined Britannica in 1984. Britannica Learning was born in March, 1985, with the acquisition of DesignWare and EduWare, two California educational software companies. In June, Britannica bought American Learning Corp., which operates more than 60 private learning centers specializing in individualized reading instruction.
Britannica, which is privately held, says it produces the oldest continuously published encyclopedia in the English language. The first edition was published by the company in Edinburgh, Scotland, in 1768.
