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Irvine,
Calif. - December 23, 2003 - Best Software, Inc., today
announced that its UK-based parent company, The Sage Group
plc, has agreed to acquire Pleasanton, California-based business
management software vendor ACCPAC International, Inc. (ACCPAC),
a subsidiary of Computer Associates International, Inc., (NYSE:CA
), for an equity value of $110 million. ACCPAC has net cash
of $4 million, giving an enterprise value of $106 million.
The acquisition will be paid for in cash. The acquisition
is subject to regulatory approvals and is expected to be completed
by the end of February.
With
the addition of ACCPACs integrated, end-to-end business
management applications, Best
Software will be better positioned to serve small and medium-sized
businesses in North America, said Best Software CEO
Ron Verni. This acquisition reinforces our strength
in key vertical areas while giving our customers additional
quality products to choose from as part of the Best Software
brand.
ACCPAC
offers a comprehensive suite of end-to-end business management
applications including accounting, CRM, HR, warehouse management,
manufacturing, EDI, and point-ofsale. Globally, ACCPAC is
expected to add more than 540,000 business customers to Best
Softwares nearly 1.8 million small and medium-sized
business customers in the U.S. ACCPAC customers are served
through a channel of more than 7,000 business partners worldwide,
which complements, with very little overlap, Best Softwares
channel program of more than 6,600 partners in North America.
According
to ACCPAC, its revenue for the year ended March 31, 2003 was
$88.7 million, and its operating profit was $10.3 million
(after adding back charges for the amortization of purchased
goodwill). Its net assets at March 31, 2003 were $8.2 million.
ACCPAC
and Best Software have built their businesses by delivering
quality products and services to the SMB market, said
ACCPAC President & CEO David Hood. The synergies
between our products, our channel partners, and the geographies
we serve make ACCPAC a natural fit with Best and Sage. We
look forward to continuing to deliver customer-focused products
and a strong channel commitment as part of the Best Software
family.
For Sage,
this acquisition brings a number of strategic benefits worldwide.
The addition of ACCPAC will strengthen Sages business
in Australia and South Africa, complementing Sage's existing
operations, and will provide an entry into Asia with a strong
position in Singapore. In addition, ACCPAC Online, which offers
hosted accounting, CRM, and other business
applications, provides an attractive alternative to Sage's
desktop solutions.
For Best
Software, ACCPAC also strengthens the companys overall
North American position, especially in Canada. Since 1998,
Best Software has made 15 acquisitions in the North American
market worth more than $1.4 billion.
"One
of ACCPACs greatest assets is its knowledgeable employee
base, which will further strengthen our understanding of the
small to medium-sized business market and enhance our ability
to develop and market the right solutions for this segment.
We believe this is a tremendous asset that distinguishes Best
and Sage in the marketplace," said Verni.
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