News
MAPICS Agrees to Acquire Pivotpoint
MAPICS Inc. has signed a definitive agreement to acquire Pivotpoint, a privately held applications provider headquartered in Woburn, Massachusetts. This move immediately expands MAPICS' offerings across multiple platforms, including Windows NT, UNIX, Linux and AS/400. In return, Pivotpoint gains access to MAPICS' worldwide network of affiliate sales organizations. Terms of the acquisition include the purchase of all Pivotpoint shares and payment of certain Pivotpoint debt for a total of $48 million in cash. Closing remains subject to certain conditions, including regulatory clearance and approval of the acquisition by Pivotpoint stockholders.
As part of this business combination, Steve Haley, Pivotpoint's President and CEO, will assume the new position of CEO of MAPICS. Haley will have worldwide responsibility for product development, marketing, sales and customer service. Plans call for products from both organizations to be sold and implemented by the MAPICS affiliate network. Pivotpoint's direct sales and service professionals will team with MAPICS' affiliates and its Major Accounts organization that works with large, multi-site and multi-national customers.
Related to this acquisition, MAPICS has received a commitment for a new $55 million credit facility. MAPICS reported revenues of $134.7 million for their fiscal year, ending September 30, 1999, while Pivotpoint anticipates total revenues of more than $25 million for calendar year of 1999. During the quarter in which the acquisition is recorded, MAPICS expects to record one-time charges of $8 to $13 million before taxes, consisting primarily of non-cash items. Excluding acquisition-related write-offs, the company anticipates that this transaction will be accretive immediately to EBITDA and believes that it will add to net earnings starting in fiscal 2001.
For more information, visit MAPICS at www.mapics.com, or visit Pivotpoint's Web site at www.pivotpoint.com.