Cortexa forms strategic alliance with Convia Inc.

cortexaAustin-based Cortexa Technologies, working on developing technology to automate the systems in homes, such as music, lighting, irrigation, security, heating and air conditioning, has announced that it has entered into a strategic alliance with Chicago-based Convia, Inc. a provider of modular, programmable electrical and data building infrastructure for commercial buildings. As part of the strategic alliance, Convia will hold a financial interest in Cortexa LLC. Terms of the transaction were not disclosed. Cortexa will work to integrate elements of Convia’s technology that are applicable to the residential market and that an initial area of focus will target energy monitoring and management systems.

William Martin, a co-founder of Cortexa, said “The Convia transaction serves as a high-profile validation of Cortexa’s technology and development strategy. We will continue working diligently to determine the most opportunistic yet financially prudent path to drive sales of our product in the residential mass market.

The home control products market is a rapidly growing segment. In 2000, the market for home control products was estimated at $700 million. By 2009, analysts expect the market to jump to $3.2 billion; however, Cortexa faces significant competition from some huge companies such as Cisco, Dell, H-P, Apple, Intel and Microsoft which are all investing in marketing and product development to facilitate the convergence of information and technology and to educate consumers about the benefits of these systems.

October Technology Events

There is a lot happening in the month of October here in Austin. We’ve got the hookup on the discount codes for you.

Open4Business on October 10th
This event is for owners and managers of small to medium sized businesses who are looking to grow their business. Speakers include Kirk Watson on the keynote, Clayton Christopher of Sweet Leaf Tea, and Jamie Rhodes on the subject of raising capital for your business. Click here to register and use discount code MAG1408 to get a discount.

InnoTech Austin on October 11th
This is the premier one-day conference highlighting Austin’s innovation and technology development opportunities. Keynoting is Allen Olivo, VP of Global Brand Marketing at Yahoo. Our CleanTech Friday author Steve Guengerich will be leading a panel on Enterprise 2.0, and blog editor Bryan Menell will be on the panel. We’ll also be liveblogging the event from the convention center (connections willing). Click here to register. We gave away tickets to the exhibition floor at happy hour.

Wireless Seed Stage Forum on October 17th
This is an exclusive event for startup wireless companies and those interested in investing in them. Registration for this event is separate from the Texas Wireless Summit. If you haven’t applied and been accepted yet, it’s getting a little late. We plan to be liveblogging this event.

Texas Wireless Summit on October 17-19th
This is going to be the best wireless event in Austin this year, hands down. The keynoters from TI, Nortel, RIMM, and Freescale are the top experts in the world on the topic of wireless. Click here to register and use discount code TWS07100 to save $100. That will expire soon though!

Shop in Shanghai with Shangby

Shangby
Combine shopping, travel, reality-tv and technology, and what do you get?  Shangby, an Austin-based company which lets Western shoppers buy the comparatively cut-rate items (mostly jewelry, for now) in Shanghai stores.  The company, which was featured this week in the NY Times, has a slogan of “Remote Controlled Shopping,” and has received $1 million in venture backing from G-51 Capital and Draper Richards.  According to Stephen Bell, Shangby chief executive, prices in China make shopping there a no-brainer for shoppers looking for good deals, as items normally priced under $1000 in the United States are 5 to 10 times cheaper in China and items over $1000 are two to five times less expensive in China.  According to a quote in the NY Times, Bell is quoted as saying: “This is like flying to Shanghai without flying to Shanghai.  You get the feeling you are there.” But he maintains that this is not an opportunity to buy cheap Chinese knockoffs as only non-brand items are listed on the site.  The company also has a 100% money back guarantee.  All together, this seems like an intriguing idea and one which will likely continue to gain traction.

Rackspace Buys Webmail

Rackspace today announced that they are acquiring Webmail.us, a well-known provider of email hosting services. The purchase price of the deal was not disclosed, but Webmail reportedly has around $6M in annual revenues. That’s not a lot compared to Rackspace, but when you consider that Rackspace now has a new hosted offering to sell to it’s growing customer base, it could leverage the acquisition into some serious profits.

This is a growing market, considering that computer users are growing tired of Microsoft’s bloated Office release every 5 years. It has prompted companies like Google to launch their Google Apps, and newcomers like Zoho to launch an entire online suite of Office-like products.

Rackspace has been sending IPO signals to the market recently by announcing quarterly revenues. It’s a very wise move to get some acquisitions done now before there is tighter public scrutiny.

SiteControls in JV with Ecolab

Siteconrols200
Austin-based Site Controls announced that they are entering into a joint venture with Ecolab, that massively huge publicly traded company (NYSE: ECL) with $5B in annual revenues. Under the terms of the deal Ecolab has made a minority investment in the company to facilitate the continued growth of the Site Controls platform. They can certainly afford it with $500M in current cash. In addition they will jointly own a company to deliver Site Control’s solutions to Ecolab customers.

This is a massively huge deal for Site Controls on many levels. First of all, Ecolab has the capacity to gain tons of new customers for the Site Controls platform. They are a very large diversified company. Secondly, Ecolab is making an investment in the company which is probably on much better terms than a venture investment. I don’t know who is in Biz Dev over there, but I hope they get paid well.