January 26, 2001 -- Manugistics Group, the provider of Enterprise Profit Optimization (EPO) solutions, recently announced that it acquired privately held STG Holdings Inc. (STG), headquartered in London, England. STG is a developer of advanced strategic, tactical and operational planning, scheduling and simulation software for single factory and multi-factory enterprises. The acquisition of STG allows Manugistics to enhance its core supply chain solutions with more advanced, comprehensive, end-to-end manufacturing and scheduling solutions.
Under the terms of the acquisition agreement, Manugistics will initially issue shares of its common stock valued at approximately $4.5 million and pay approximately $1.5 million cash in exchange for all outstanding shares, options and warrants of STG. Under the terms of the acquisition, Manugistics will, if certain revenue-based performance requirements are met, pay the equity holders additional consideration of up to $28 million, in common stock or cash, at the end of 21 months. This acquisition will be accounted for as a purchase transaction and will result in the recording of an intangible asset. Manugistics expects this acquisition to have an accretive effect on earnings, excluding the amortization of this intangible asset.
Enhancing Manugistics' core supply chain business with STG's unique capabilities and expertise in advanced planning, scheduling and simulation for multi-factory manufacturing will be a key differentiator in the market, said Greg Owens, Manugistics' chief executive officer and chairman designate. STG capabilities will enable Manugistics to offer an even more advanced and comprehensive manufacturing solutions to our clients. In addition, the acquisition also builds on Manugistics' business strategy of aggressively investing in new, best-of-breed, differentiating products and solutions that deliver results.
STG's OPT Solution Suite, an advanced theory of constraints-based business solution, provides manufacturing-centric planning and scheduling solutions. STG has 16 years of proven product success in the automotive, defense and aerospace, high-tech and complex process markets, with over 300 worldwide clients including Boeing, Xerox, Caterpillar, Brother Industries, Mars Electronics International and Volvo Europe Trucks NV.
STG is excited to be joining with Manugistics in extending and enhancing the collaborative supply chain software offered by both companies to clients across the globe, said Dr. Stephen Franks, STG's managing director. Manugistics' extensive global sales and marketing together with STG's business operations in Europe, Africa and the Pacific will further the combined international business strategy of penetrating key growth markets.