AUSTIN, Texas and MONTREAL, Quebec — Activant Solutions has entered into an agreement to acquire Canadian enterprise software provider Speedware Corp.
The acquisition would include Speedware’s operating divisions Enterprise Computer Systems (ECS) Inc., Prelude Systems Inc., OpenERP Solutions and Speedware Ltd.
When completed, the acquisition will expand Activant’s customer base to more than 20,000 locations. Activant has identified four segments it plans to grow with this acquisition, including lumber and building materials (LBM), automotive aftermarket, wholesale trade and hardware and home center retailing. By incorporating the Speedware product line, Activant bolsters its offerings in these segments.
Activant will expand its presence with wholesale customers through Prelude’s Advanced Distribution System (ADS). In addition, Speedline’s OpenERP will introduce Activant to small and mid-size manufacturing customers with next-generation ERP and supply chain applications built on open source platforms. Speedware Ltd. delivers business intelligence and system migration tools, which complement the product offerings of both companies.
“Activant is focused on growth and acquisitions to become the premier technology provider of vertical ERP software and solutions to select industries,” said Larry Jones, CEO of Activant Solutions. “The acquisition of Speedware is our first big step in this new direction and lays the foundation for revenue growth, technology innovation and increased thought leadership in key vertical segments.”
“Activant’s deep vertical expertise, large installed customer base and solid technology are a natural fit with Speedware’s business,” said Andrew Gutman, CEO of Speedware Corp. “We believe the combined entity will give our customers additional world-class service and best-of-breed products for driving their business growth.”
Under the terms of the agreement signed on Jan. 24, an Activant subsidiary will make a tender offer to purchase all of the issued and outstanding shares of common stock of Speedware Corp., including all shares of common stock issuable upon exercise of currently outstanding options and warrants, for $3.91 (CDN) per share in cash.
The offer, which will be subject to customary closing conditions, is expected to close within 45 to 60 days. As permitted under U.S. securities law, the offer will be conducted as a take-over bid in accordance with applicable Canadian securities law.
Activant has also entered into an agreement with certain security holders of Speedware who have agreed to tender securities representing approximately 48 percent of the outstanding common shares of Speedware (on a fully diluted basis) to the offer.
For more information about Activant, go to: www.activant.com.
For more information about Speedware Corp., visit: www.speedware.com.
_______________________________________
Click here to view the rest of today’s headlines.
