Swets goes cold on Extenza. European subscription giant sells electronic hosting division to focus on journal subscriptions and document management solutions, writes .(Royal Swets and Zeitlinger)

Dutch subscription agents Royal Swets and Zeitlinger is withdrawing from the electronic journal hosting market. The company has sold its Extenza e-Publishing Services division to US hosting specialists Atypon Systems, leaving it with three divisions that focus on journal subscription and document management solutions.

"We have not been successful in building a business," said John Martin, chief commercial officer of Swets. "Three years ago we saw strong business in the hosting market, but it is (now) extremely tough."

Martin said the sale is related to last September's [pounds sterling]30.8m shareholder cash injection. "It is connected in that it is to do with our re-focus on the subscription market." Bob Visser, Swets chief information officer concurred: "This divestment reflects Swets' overall policy of spinning off our smaller businesses to focus on core activities."

Atypon Systems said it will retain the Extenza brand, which provides hosting services to 50 publishers. But competition is keen. "The pricing is extremely competitive," said Martin. "It is really difficult to get a profit."

"There are a handful of companies chasing a small market and ...