QAD Acquires TRW ISCS Practices in Europe and North America
Announcement posted by QAD 12 Nov 2002
Transaction Expands Direct Service Capabilities Across EMEA
QAD Inc. (Nasdaq: QADI), a leading provider of collaborative commerce applications for manufacturers, today announced the acquisition of the TRW Integrated Supply Chain Solutions (TRW ISCS) business covering 10 European countries and North America.
Under the terms of the agreement, QAD paid $1.0 million in cash and will incur transaction and integration costs of approximately $4 to $5 million. QAD expects the acquired business to generate annual revenue in the range of $13 to $15 million and be accretive to earnings by the second half of fiscal 2004. The transaction included the purchase of the stock of BDM UK Limited and its thirteen wholly-owned European subsidiaries, the acquisition of assets and assumption of certain liabilities of the businesses in Germany and North America, and TRW Systems' agreement not to compete in Europe for the next 3 years.
TRW ISCS, until now a QAD alliance partner, offered services and support to QAD customers in Europe per an agreement with QAD. By terminating this agreement and acquiring TRW ISCS, QAD significantly expands its infrastructure in the Europe, Middle East and Africa (EMEA) region, which represented nearly 40 percent of the company's total fiscal 2002 revenues. It also creates a new direct presence for QAD in four countries: Belgium, Portugal, Spain and Switzerland, taking QAD's direct presence to thirteen countries in EMEA. Additionally, QAD acquired TRW ISCS' worldwide rights to TRW's AIM Warehousing product that integrates with MFG/PRO.
"QAD has reinforced its ongoing commitment to the European marketplace with this acquisition," said Andy Eardley, QAD vice president EMEA region. "Our customers will now benefit from wider direct access to QAD while experiencing faster and more informed support and services across the region. Integration will be straightforward, as our two organisations are already closely aligned with services, product and customers and we have spent much time planning in an effort to ensure a seamless transition. Customer support will be operational from day one."
"The combination of these two organisations is very positive," said Fred Bullock, vice president and general manager, TRW Systems Europe. "Now the customers benefit from having direct access to QAD software solutions, combined with ISCS consulting and implementation skills."
Under the terms of the agreement, QAD paid $1.0 million in cash and will incur transaction and integration costs of approximately $4 to $5 million. QAD expects the acquired business to generate annual revenue in the range of $13 to $15 million and be accretive to earnings by the second half of fiscal 2004. The transaction included the purchase of the stock of BDM UK Limited and its thirteen wholly-owned European subsidiaries, the acquisition of assets and assumption of certain liabilities of the businesses in Germany and North America, and TRW Systems' agreement not to compete in Europe for the next 3 years.
TRW ISCS, until now a QAD alliance partner, offered services and support to QAD customers in Europe per an agreement with QAD. By terminating this agreement and acquiring TRW ISCS, QAD significantly expands its infrastructure in the Europe, Middle East and Africa (EMEA) region, which represented nearly 40 percent of the company's total fiscal 2002 revenues. It also creates a new direct presence for QAD in four countries: Belgium, Portugal, Spain and Switzerland, taking QAD's direct presence to thirteen countries in EMEA. Additionally, QAD acquired TRW ISCS' worldwide rights to TRW's AIM Warehousing product that integrates with MFG/PRO.
"QAD has reinforced its ongoing commitment to the European marketplace with this acquisition," said Andy Eardley, QAD vice president EMEA region. "Our customers will now benefit from wider direct access to QAD while experiencing faster and more informed support and services across the region. Integration will be straightforward, as our two organisations are already closely aligned with services, product and customers and we have spent much time planning in an effort to ensure a seamless transition. Customer support will be operational from day one."
"The combination of these two organisations is very positive," said Fred Bullock, vice president and general manager, TRW Systems Europe. "Now the customers benefit from having direct access to QAD software solutions, combined with ISCS consulting and implementation skills."