Kewill Acquires Interchain; Infor to Get Geac ERP Solutions

More consolidation in the supply chain solutions market

More consolidation in the supply chain solutions market

Chicago  November 7, 2005  The enterprise software market saw further consolidation this week as Kewill Systems announced the acquisition of Dutch solution provider Interchain Holdings B.V. and Infor investor Golden Gate Capital said that it was buying Geac Computer Corporation.

Interchain is a privately-owned, Netherlands-based leading provider of multimodal supply chain management software to the European market. The company has more than 100 employees, with offices in the Netherlands, the United Kingdom, Belgium and Germany.

Interchain's solution offering, Chainware, is designed for large-scale, multinational logistics services providers (LSP) operating in an international environment. More than 150 customers, including LSP's such as FedEx, TNT, UPS, Frans Maas and DHL, as well as shippers such as Texas Instruments, Philips and Mitsubishi, use Interchain business solutions.

New Operating Unit

Kewill said that the combination of its existing international trade, shipping and order management solutions with Interchain's supply chain offerings would allow Kewill to support shippers and logistics providers with the end-to-end management of orders, transportation, warehousing, forwarding, customs brokerage and distribution of goods from a single provider with North American and European capability.

"Visibility throughout the distribution cycle represents a dramatic step forward in enabling logistics providers to accelerate their time to delivery, minimize their costs and maintain control of the goods throughout the export/import process," Kewill said in announcing the deal.

Following the closing of the acquisition, Interchain will become an operating unit of Kewill, with Ron Vollebregt continuing as Interchain's CEO and all other Interchain management and staff remaining with the group.

The Interchain acquisition follows other deals in which Kewill bought Perwill, ShipNow and TradePoint, all of which have helped Kewill expand its reach in the global supply chain control market.

Infor Gets Geac ERP Solutions

Elsewhere, Golden Gate Capital, a private equity firm, and Geac Computer Corporation Limited today announced that they have reached a definitive agreement for Golden Gate to acquire Geac in an all-cash transaction valued at $11.10 per share, or approximately $1.0 billion.

The agreement has received unanimous approval from Geac's independent committee and board of directors. The parties anticipate closing the transaction in the first calendar quarter of 2006, subject to closing conditions, including receipt of required regulatory approvals and Geac shareholder and court approval of the plan of arrangement.

Commenting on the transaction in a statement, Charles S. Jones, president and CEO of Geac, said that while Geac has capitalized on its industry-specific focus and expertise in the manufacturing, government, financial services, healthcare and retail sectors, the deal with Golden Gate should help the company build on its vertical market strategy.

Infor Offering Expands

David Dominik, managing director of Golden Gate Capital, which has more than $2.5 billion under management, said that upon completion of the acquisition, Geac will be reorganized into two separate Golden Gate Capital portfolio companies.

As part of the reorganization, Infor, an existing Golden Gate Capital-funded company, will acquire Geac's enterprise software planning (ERP) software products  including System21, Runtime, RatioPlan, Streamline and Management Data  and the employees who support them will move to Infor.

Infor currently delivers solutions for supply chain planning, relationship management, demand management, ERP, warehouse management, marketing-driven distribution and business intelligence. Infor has more than 2,300 employees in 47 offices around the world and supports approximately 18,000 customers in more than 70 countries.

Geac's financial applications and the Industry Specific Applications (ISA) will become the two business groups under a newly formed Golden Gate Capital funded company. Geac's general and administrative staff, including the finance and accounting, legal, IT and human resources teams will provide the global general and administrative infrastructure for this new company.


Additional Articles of Interest

 Look before you leap: For tips to follow before you set up shop in China, especially with regard to the supply chain, read the SDCExec.com exclusive "Entering China: No One Said It Was Easy."

 It has been said that the ability to learn faster than your competitors is the only truly sustainable competitive advantage. And that's just what those companies that learn to apply tax planning best practices to their supply chain structure are finding out. Read more in "The Tax Efficient Supply Chain," only on SDCExec.com.

 For an in-depth review of a conceptual technology model for a supply chain visibility hub, read "The Case for Supply Chain Visibility" on SDCExec.com.