Date Posted: 12/10/2007
TECSYS Acquires Streamline Information Systems, Launches a Major Push into Industrial Distribution
MONTREAL, QUEBEC--(Marketwire - Dec. 3, 2007) - TECSYS Inc. (TSX:TCS - News), an industry-leading supply chain management software company announced today that it has completed the acquisition of Streamline Information Systems Limited (Streamline), a leading Canadian software supplier in the industrial distribution sector.
TECSYS has acquired all the issued and outstanding shares of Streamline Information Systems Limited, and as a result, Streamline will become a Division of TECSYS Inc. The total investment incurred by TECSYS for this transaction is approximately CDN$ 1.4 million.
Founded in 1985, Streamline is recognized in Canada as a leading provider of enterprise software applications for the SMB industrial distribution sector. Based in Brantford, Ontario, the Company's offerings include software, professional and support services as well as hardware and networking technology for its clients in Canada and the U.S. The Company's product line, Visual Streamline, is a full suite of software such as Sales Order Management, Inventory Management and Financial applications. Its customers are primarily wholesalers spanning multiple industry segments in Canada and the U.S. For fiscal year ended August 31st, 2007, Streamline's revenue was CDN$ 2.9 million.
"We made the decision over a year ago to become tightly focused on specific profitable vertical markets within the supply chain execution space. Streamline fits right into this, with an excellent solution and unique expertise for industrial distributors in Canada and the U.S. that will strengthen our major push into this sector. TECSYS will benefit from an additional eighty accounts and a new growth platform while Streamline Clients will benefit from the added reach of the TECSYS sales and marketing team and the opportunity to tap into our existing R&D resources and technology." stated Peter Brereton, President & CEO of TECSYS Inc. "TECSYS has proven that everyone can come out ahead in this type of transaction. Customers will receive improved support and additional product offerings, employees have new opportunities for career growth and shareholders can see improved earnings."
According to a report by Arc Advisory Group released in September, 2007, the market for Enterprise Resource Planning (ERP) systems sold to small and medium businesses (SMBs) is fragmented, and contains opportunities for most suppliers. The Tier 3 SMB ERP market will grow at a compounded annual growth rate of over 11% to reach $8.9 billion by 2011. "Within the Tier 3 market, the 10 year ERP replacement cycle remains a major factor, and penetration levels are relatively low, making this an interesting market," stated Simon Bragg, Research Director at ARC Advisory Group.
Don Emery, President of Streamline commented on the transaction "We are thrilled, today is a bright new day for Streamline, our customers and employees! We now have the bench strength, R&D, and career paths for our employees to build a bright future - and with TECSYS' deep and thorough understanding of our business, this will be a great marriage, enabling us with TECSYS to be the leading contender in the industrial distribution software space.
About Streamline
Founded in 1985, Streamline Information Systems Limited is a recognized leading provider of enterprise software applications for the SMB industrial distribution sector. Based in Brantford, Ontario, the Company's offerings include software, professional and support services as well as hardware and networking technology to its clients in Canada and the U.S. The Company's product line, Visual Streamline, is a full suite of software that includes: Sales Order Management, Inventory Management, Customer Service Inquiry, Job Costing, Financials, Price Book Integration, e-Commerce, and Executive Management applications. Streamline customers are primarily wholesalers spanning multiple industry segments in Canada and the U.S. For further information: www.streamlineis.com
About TECSYS
TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include some 900 mid-size and Fortune 1000 corporations in healthcare, giftware, office products, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol TCS.
The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that TECSYS Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of TECSYS Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with TECSYS Inc.'s business can be found in the MD&A section of the Company's annual report and annual information form for the fiscal year ended April 30th, 2006. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).
Copyright © TECSYS Inc. 2007. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
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