Carpinteria, CA November 14, 2002 Collaborative design specialist QAD has acquired 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 million to $5 million. QAD expects the acquired business to generate annual revenue in the range of $13 million to $15 million.
The transaction included the purchase of the stock of BDM UK Limited and its 13 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 said it is significantly expanding its infrastructure in the Europe, Middle East and Africa (EMEA) region, which represented nearly 40 percent of the company's total fiscal 2002 revenues.
The acquisition also creates a new direct presence for QAD in four countries: Belgium, Portugal, Spain and Switzerland, taking QAD's direct presence to 13 countries in EMEA. Additionally, QAD acquired TRW ISCS' worldwide rights to TRW's AIM Warehousing product that integrates with QAD's own MFG/PRO solution.
"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."
Eardley said that integration between the company's EMEA operations will be straightforward since the two organizations are already closely aligned with services, product and customers. "Customer support will be operational from day one," Eardley said.
