The Times They Are a-Changin’: Assessing the Viability of ERP Vendors
When guiding our clients through the ERP selection process, we often hear executives say that they are concerned about the viability of their ERP vendors. Even after we’ve confirmed that a product is the best functional fit, made sure it meets the business requirements of the organization, and negotiated a great contract for our clients, the viability of ERP software vendors is often the last unresolved concern for client CFOs and CIOs. After all, it is the job of executives to mitigate risk and ensure the long-term success of their organizations, so it only makes sense that the last thing they would want is a recently purchased ERP system to be discontinued or not supported as a result of an acquisition.
ERP software vendor viability has become even more relevant with the recent merger and acquisition activity in the enterprise software market. For example, Infor recently acquired Lawson, Epicor and Activant were acquired as part of a private equity buyout, and JD Edwards and PeopleSoft were both acquired by Oracle several years ago. Some of the leading ERP vendors, including Oracle, Infor, and SAP, have been extremely aggressive in acquiring other ERP software solutions, as well as best of breed points solutions, to augment their core solution offerings. With each of these acquisitions comes uncertainty – will the new parent company continue providing maintenance and support? Will it invest in future enhancements? Or will it force a costly and risky migration to another product?
These are all valid questions and concerns. And although it is impossible to predict the future, there are common signs that could give some insight into whether or not a company is on the chopping block. Here are three things to look for when determining whether or not an ERP vendor is ripe for an acquisition:
Product roadmap. Companies typically stop investing R&D in their product if they are looking to sell in the near future. For example, we have been hearing from some of Oracle’s competitors for the last several years that the company was going to stop supporting JD Edwards as part of their acquisition of the product. However, this still has yet to happen. In fact, some of our team members just last week attended the JD Edwards Summit near Denver and learned about the company’s roadmap for the product through 2026. Companies with no clear roadmap are much more likely to be sold and/or discontinued as part of an acquisition than vendors like JD Edwards who have a clear vision for their future.
Current R&D investments in the product. Another telling sign is the current and recent investment in the ERP software in question. If the product has become stagnant and it becomes apparent that R&D spending is on the decline, this could mean that the product is on the chopping block. Again using JD Edwards as an example, the company recently launched a cutting-edge user interface and mobility solution as part of its core offering – hardly the sign of a product about to be discontinued, despite the fact that a larger company acquired the product. If, on the other hand, the software is still using dated technology, isn’t keeping up with the competition, or doesn’t have a decent size R&D budget, chances are more likely that it is (or will be) a target for another company.
Organizational viability and stability. A third sign to watch for is organizational stability and viability. In other words, does the company look and act like a company that is growing for the future, or one that is trying to maximize short-term results to get a higher valuation in a potential takeover? For example, we had a strong opinion nearly three years ago that Epicor was positioning itself for an acquisition, simply because of the way the company was acting. Although it had just replaced its flagship Vantage product with Epicor 9, it was aggressively cutting professional services staff, offshoring much of its development work to Mexico, and even making cuts within its sales organization. These are typically not indicators of a company that is looking to remain independent in the short-term, which eventually proved to be the case with Epicor.
While it is not always a bad thing for an ERP vendor to be acquired, it is important to understand and mitigate the risks associated with a takeover. An acquisition could mean more R&D muscle behind a product or additional technical strength, or it could result in discontinuation of the product and a forced migration to the parent company’s flagship product. In either case, it creates a level of uncertainty that makes most executives nervous. The associated risks can be managed by ensuring a solid contract with clear SLAs.
For more information about specific companies, access our database of ERP vendor profiles or read the ERP Industry News section of our website.
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Pervez Qureshi Named as Chief Executive Officer of Epicor
Former Chairman, President and CEO George Klaus to Retain Chairman Role
Epicor Software Corporation, a global leader in business software solutions for manufacturing, distribution, retail and services organizations, today announced Silicon Valley technology leader Pervez Qureshi as President and Chief Executive Officer (CEO) of Epicor, effective immediately.
Qureshi brings over 20 years of management experience in the software and technology industry. Since 2006, Qureshi has served as CEO and President of Activant Solutions Inc., which was combined with Epicor following the acquisition of both companies by funds advised by Apax Partners which was completed on May 16, 2011. Qureshi cultivated a “customer for life” culture at Activant that was based on providing outstanding service and support, resulting in industry leading customer retention and satisfaction. Under his management, the company also built a clear leadership position in a number of distribution and retail vertical markets.
“The new Epicor is a true global leader in industry-specific business applications software with over 33,000 customers in more than 150 countries,” said Qureshi. “I am honored to have the opportunity to lead our newly combined company through its next phase of growth, and build on the momentum of market leadership, innovation and a customer-focused culture that is our shared heritage. Above all, I look forward to working with an immensely talented team of over 4,000 employees to deliver even greater value to the customers and markets we serve — from manufacturing, distribution and services, to hardgoods and softgoods retailing.”
Qureshi has an outstanding track record of delivering consistent performance and organic growth, as well as proven acquisition success, having integrated seven companies while with Activant. Throughout his tenure, the company’s growth was underscored with strong profitability. Qureshi served as Activant’s Chief Operating Officer and Executive Vice President since 2004. Prior to joining the Activant, Qureshi was President and Founder of a management consulting company. He has also held senior positions at Harvest Software, Metaphor Computer Systems, Hewlett-Packard and IBM. Qureshi has an MBA from the Darden Graduate School of Business at the University of Virginia and a B.S.E.E degree from the University of Lowell in Massachusetts.
“We are excited about working with Epicor as it enters this next chapter of growth. In particular, we are enthusiastic about our partnership with Pervez, a strong leader who we believe can successfully balance strong growth with profitable operations,” said Jason Wright, a partner at Apax Partners. “Pervez’s deep industry experience combined with his leadership capabilities, make him the right person to serve as the foundation for a strong Epicor management team. We look forward to supporting him as he drives even greater success for Epicor, its customers, and employees worldwide.”
The company also announced the appointment of Kathy Crusco as Executive Vice President and Chief Financial Officer of Epicor. Crusco joined the former Activant in May 2007, and brings over 20 years of experience serving in a variety of financial roles at Documentum Inc., Adaptec and Price Waterhouse LLP. Previously, Crusco served as Vice President of Worldwide Finance for Polycom Inc. She graduated from California State University of Chico with a bachelor’s degree in business with an emphasis in accounting.
“Kathy brings extensive experience in accounting, analytics, and strategic finance as well as a tremendous amount of experience in the technology industry,” said Qureshi. “As a member of the senior executive team, I am confident Kathy will provide the financial leadership and strategic insights needed as we build on the momentum that Epicor has in the market.”
Former Epicor Chairman, President and CEO George Klaus will retain the role of Chairman and continue to play an important part in the company’s strategic development. “As CEO of Epicor since 1996, George has been instrumental in building Epicor into a global provider of end-to-end business software solutions. We look forward to continuing to benefit from the insight, knowledge and perspective that George’s more than 30 years of software technology industry experience will bring to the company and to the board,” said Wright.
Forward-Looking Statements
This press release contains certain statements which constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. All statements that are not historical facts are forward-looking statements, including statements that are preceded by, followed by or that include the words “believes,” “anticipates,” “intends,” “plans,” “expects,” “could,” “should” or similar expressions; statements regarding expected revenues, market share, business model, opportunities, competitive advantage and other statements that are not historical fact; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are based on currently available competitive, financial and economic data together with views and assumptions regarding future events and business performance as of the time the statements are made and are subject to risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties that are discussed in documents filed with the SEC by Epicor and Activant. Except as required by law, neither Epicor or Activant and their respective affiliates undertake any obligation to revise or update publicly any forward-looking statements.
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Funds Advised by Apax Partners and Epicor Software Corporation Announce Successful Completion of Tender Offer for Epicor
In connection with the previously announced agreement to acquire Epicor Software Corporation (Nasdaq:EPIC – News), Element Merger Sub, Inc. (“Element”), Eagle Parent, Inc. (“Eagle”) and Epicor today announced that Element has accepted for payment all shares of common stock of Epicor that were validly tendered and not properly withdrawn in its tender offer as of 5:00 p.m., Los Angeles time, on Friday, May 13, 2011, the expiration time of the tender offer.
The depositary for the tender offer advised that, as of the expiration time, 45,026,270 shares of common stock of Epicor had been validly tendered and not properly withdrawn in the tender offer, including 3,117,112 shares that had been tendered pursuant to notices of guaranteed delivery, which was sufficient to satisfy the minimum tender condition. All of such shares have been accepted for payment in accordance with the terms of the tender offer, including the shares that were tendered pursuant to notices of guaranteed delivery. Element does not intend to offer any subsequent offering periods. Payment is expected to be completed promptly.
Epicor, Element and Eagle intend to promptly take the steps necessary to complete a “short-form” merger of Element with and into Epicor under Delaware law, without a meeting of Epicor stockholders, including the exercise by Element of the “top up” option in accordance with the terms of the merger agreement. The “short-form” merger is expected to be completed later today. Eagle also expects to complete later today its previously announced acquisition of Activant Group Inc. (“Activant”), a leading technology provider of business management software solutions for mid-market retail and wholesale distribution businesses. Eagle intends to integrate Activant and Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the acquisitions, the integrated company will be named Epicor Software Corporation and will cease to be listed on the NASDAQ Global Select Market.
Upon the completion of the “short-form” merger, all outstanding shares of common stock of Epicor, other than shares held by Eagle, Element and Epicor and shares held by Epicor’s stockholders who validly exercise appraisal rights under Delaware law will be canceled and converted into the right to receive an amount in cash equal to the $12.50 offer price per share, without interest and less applicable withholding taxes. Epicor will continue as the surviving corporation in the merger and become a wholly-owned subsidiary of Eagle, an entity wholly owned by funds advised by Apax Partners.
The information agent for the tender offer is BNY Mellon Shareowner Services. The Dealer Managers for the tender offer are Jefferies & Company, Inc. and RBC Capital Markets, LLC.
About Apax Partners
Apax Partners is one of the world’s leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice or management of Apax Partners globally total around $30 billion. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services. For more information visit: www.apax.com.
Forward Looking Statements
This release contains certain statements which constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. All statements that are not historical facts are forward-looking statements, including statements that are preceded by, followed by or that include the words “believes,” “anticipates,” “intends,” “plans,” “expects,” “could,” “should” or similar expressions; statements regarding the expected timing of the completion of the top-up option and the merger, including any statements of assumptions underlying any of the foregoing; statements regarding expected completion of the transaction, expected revenues, market share, business model, sales pipelines and opportunities, competitive advantage and other statements that are not historical fact; statements regarding the expected timing of the completion of the transaction; statements regarding the ability to complete the transaction considering the various closing conditions; statements regarding the anticipated timing of payment for shares validly tendered and not properly withdrawn in the offer; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are based on currently available competitive, financial and economic data together with management’s views and assumptions regarding future events and business performance as of the time the statements are made and are subject to risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties that are discussed in documents filed with the SEC by Epicor, as well as the tender offer documents filed by Eagle and Element and the solicitation/recommendation statement filed by Epicor. Except as required by law, none of Epicor, Element and Eagle and their respective affiliates undertake any obligation to revise or update publicly any forward-looking statements.
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Epicor Agrees to Be Acquired by Apax Partners for $12.50 per Share
Apax Also to Acquire Activant Solutions and Combine With Epicor to Create a Global Leader in Business Software Solutions
Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of Global 1000 companies, today announced that it has entered into a definitive agreement to be acquired by funds advised by Apax Partners, one of the world’s leading private equity firms with a strong heritage of technology investment.
Under the terms of the agreement, Apax will commence a tender offer to acquire all of the outstanding common stock of Epicor for $12.50 per share in cash, followed by a merger to acquire all remaining outstanding Epicor shares at the same price paid in the tender offer. The offer price represents a premium of 11.2% over Friday’s closing stock price, an 18.9% premium over the average closing price for the previous 30 calendar days and a 34.4% premium over the average closing price for the previous 52-week period. The transaction is valued at approximately $976 million. Apax is providing 100% of the equity financing for the acquisition. Shareholders representing approximately 19% of Epicor’s outstanding shares have entered into support agreements with Apax in connection with the transaction. In addition, Elliott Associates, which beneficially owns approximately 13.5% of Epicor’s outstanding shares, has indicated that it supports the transaction.
Apax also announced today that it has entered into an agreement to acquire Activant Solutions, Inc., a leading technology provider of business management software solutions for mid-market retail and wholesale distribution businesses. Activant is a privately held company controlled by investment funds affiliated with Hellman & Friedman, Thoma Bravo and JMI Equity. Apax intends to combine Activant and Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors. Following completion of the merger, the combined company will be Epicor Software Corporation and will no longer be a publicly traded company.
“This merger is extremely positive for Epicor’s customers, employees and shareholders alike,” said George Klaus, Epicor Chairman, President and CEO. “It offers great value to our current stockholders and represents an endorsement of the business strategy, products and technology leadership we have established in the market. With Apax, we are partnering with one of the premier investment firms in the world and one that is very much focused on growth and delivering value to the customers of its portfolio companies. With the addition of Activant, the combined company will have over 30,000 customers, $825 million in annual revenues, and the most visionary business application software and deep vertical industry expertise in the market today. Apax is committed to growing the businesses in which they invest and has an excellent track record of working as a strategic partner with management to build great companies.”
“We are extremely excited to be bringing together two of the premier enterprise software companies to create a global market leader,” said Jason Wright, a Partner at Apax Partners. “Epicor is a true innovator and is extremely well positioned in the enterprise applications software space. The company not only offers deep industry-specific functionality localized and translated for all major global markets, but also unprecedented choice and flexibility through the unique ability to deliver its next-generation solutions on-premise, on-demand, hosted, or in the Cloud. Activant is a recognized leader in providing comprehensive ERP and Point-of-Sale software to the distribution and retail markets predominately in North America.
“Both Epicor and Activant’s customers will benefit from the combined entity’s increased scale, solutions portfolio and expanded service offerings,” Wright said. “Epicor will have access to additional domain expertise, particularly in wholesale distribution and automotive, hardlines, lumber and specialty retailing, while Activant will benefit from an accelerated roadmap to international operations, softlines retail functionality, and additional supply chain and manufacturing capabilities.
“In addition to the immediate product and service portfolio enhancements both companies’ customers will further benefit from the strong financial backing of Apax Partners and our commitment to building the new Epicor into the global leader for enterprise business applications in manufacturing, distribution, retail and services,” concluded Wright. “We look forward to partnering with the management team and to providing the resources and support that can accelerate the growth and expansion of the business and the value it creates globally.”
Epicor’s Board of Directors unanimously approved the transaction, which is subject to customary closing conditions including minimum levels of participation in the tender offer and regulatory approvals, and the satisfaction of the closing conditions for Apax’s acquisition of Activant. Under the terms of the merger agreement, Apax will commence the tender offer no later than April 11, 2011. In the event that the minimum tender condition is not met, and in certain other circumstances, the parties have agreed to complete the transaction through a one step merger after receipt of Epicor shareholder approval. The transaction has fully-committed debt financing which will be arranged by Bank of America Merrill Lynch and RBC Capital Markets. The transaction is currently expected to close in the second quarter of 2011.
Under the terms of the agreement, the Company may solicit superior proposals from third parties for a period of 30 calendar days continuing through May 4, 2011. It is not anticipated that any developments will be disclosed with regard to this process unless the Company’s Board of Directors makes a decision with respect to a potential superior proposal. There are no guarantees that this process will result in a superior proposal.
Moelis & Company is acting as the exclusive financial advisor to Epicor. Wilson Sonsini Goodrich & Rosati, Professional Corporation, is acting as Epicor’s legal advisor. Jefferies & Company Inc. and RBC Capital Markets are acting as financial advisors to Apax Partners. Kirkland & Ellis LLP is acting as legal advisor to Apax Partners.
About Epicor Software Corporation
Epicor Software is a global leader delivering business software solutions to the manufacturing, distribution, retail, hospitality and services industries. With 20,000 customers in over 150 countries, Epicor provides integrated enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), human capital management (HCM) and enterprise retail software solutions that enable companies to drive increased efficiency and improve profitability. Founded in 1984, Epicor takes pride in more than 25 years of technology innovation delivering business solutions that provide the scalability and flexibility businesses need to build competitive advantage. Epicor provides a comprehensive range of services with a single point of accountability that promotes rapid return on investment and low total cost of ownership, whether operating business on a local, regional or global scale. The Company’s worldwide headquarters are located in Irvine, California with offices and affiliates around the world. For more information, visit www.epicor.com.
About Apax Partners
Apax Partners is one of the world’s leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice and management of Apax Partners globally total around $40 billion. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services. For more information visit: www.apax.com.
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Activant Recognized as the Number One Software Vendor for Mid-market Retailers by Retail Info Systems News
LIVERMORE, Calif., December 2, 2010 – Activant Solutions Inc., a leading provider of retail and distribution business management solutions, today announced that RIS News named it the number one Software Vendor for Mid-Size Retailers and number four overall in the Software LeaderBoard Top 20. The RIS Software LeaderBoard compares software companies serving the retail industry in a head-to-head ranking based on multiple criteria, including the criteria that matters most – customer satisfaction.
Now in its tenth year, the RIS Software LeaderBoard is designed to help CIOs plan their next retail technology purchase. RIS News evaluated 84 vendors this year. The report rates retail software vendors based on customer satisfaction, retail concentration and revenue factor. The customer satisfaction score is based on the result of actual customer surveys, and is the most heavily weighted datapoint.
Activant was ranked as the Top Vendor for Mid-Size Retailers. RIS News defines Mid-Size Retailers as those that have less than $1 billion in annual revenue. The top five companies listed for this Top Vendors for Mid-Size Retailers ranking were:
- Activant Solutions
- Oracle
- Micros-Retail
- IBM
- Celerant Technology
Activant also excelled across all LeaderBoard categories and received a number 4 ranking on the prestigious Software LeaderBoard Top 20 – the master list compiled from all information collected by RIS News for the rankings. The top five companies listed in the RIS Software LeaderBoard Top 20 were:
- Oracle
- SAP
- Micros-Retail
- Activant Solutions
- Celerant Technology
- IBM
“To place so high in so many key categories on the RIS LeaderBoard is an impressive accomplishment for Activant,” said Joe Skorupa, group editor-in-chief of RIS News. “The RIS Software LeaderBoard is a best-of-the-best ranking, and Activant’s software received high marks for innovation, customer satisfaction, ROI, product reliability and quality of service and support. With numbers like these in customer satisfaction it is clear Activant has emerged as one of the top software vendors for Mid-Size Retailers.”
“Activant has provided proven retail solutions for over 30 years, and has pioneered many of the concepts that retailers need to succeed in today’s highly competitive market,” said Paul Salsgiver, executive vice president for Activant. “The RIS Software LeaderBoard is further proof that Activant provides innovative and reliable retail technology solutions, and we invite retailers to discover why Activant was named the Top Vendor for Mid-Size Retailers.”
About Activant Solutions
Activant Solutions Inc. is a leading technology provider of business management solutions serving distributors and SMB retailers. Activant provides customers with industry-specific software, professional services, content, supply chain connectivity, and analytics.
Over 30,000 customer locations use Activant to manage their day-to-day operations. Activant’s systems are designed to help customers increase sales, boost productivity, operate more cost-efficiently, improve inventory turns and enhance trading partner relationships. Activant has operations in Texas, California, Colorado, Illinois, Pennsylvania, South Carolina, Utah, Canada, Ireland and the United Kingdom. For more information, please visit www.activant.com.
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This announcement relating to Activant may contain statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, such as statements concerning trends, future technology or products, or Activant’s execution. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company’s results, including, without limitation, market demand for products and technology, the company’s ability to meet that market demand, the integration of Activant’s technology and products with technology and products supplied by others, the integration of Activant’s products into the businesses of its customers, customer acceptance of Activant’s products, and the retention and deployment of skilled Activant service providers. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements. Please refer to our most recently filed Quarterly Report on Form 10-Q for the period ended June 30, 2010, and our Annual Report on Form 10-K for the year ended September 30, 2009, each of which have been filed with the Securities and Exchange Commission and can be found through the Activant investor relations website at www.activant.com/company/investors, for a full discussion of the risks and other factors.
© 2010 Activant Solutions Inc. Note: Activant and the stylized Activant logo design are registered trademarks of Activant Solutions Inc. All other trademarks are the property of their respective owners.
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New Activant ListingExpert Service Enables WDs, Jobbers to Easily List Parts on eBay Motors
Las Vegas, NV, Nov. 3, 2010 – Activant Solutions Inc. has introduced a service that enables replacement parts distributors and jobbers to quickly and easily list virtually any part, in any quantity, for sale through eBay Motors. With more than 14.8 million unique monthly visitors and a part or accessory selling every second, eBay Motors is the world’s number one automotive Web site.*
The new Activant® ListingExpert™ service enables distributors and jobbers to easily create and post comprehensive product listings for the sale of parts on eBay Motors, including part description, application references, photos, and quantity, pricing and shipping information. Confirmed orders can be transmitted to the seller’s system via the secure Activant AConneX® electronic connectivity service. The ListingExpert service can also automatically update a seller’s inventory records following each sale.
Users of Activant’s ListingExpert service have access to business intelligence from Activant’s data warehouse solution to help determine which parts to sell via eBay Motors and at what price. There is virtually no limit to the number of auto parts that can be listed by a seller.
“eBay Motors reaches millions of prospective automotive parts consumers every day. Now traditional distributors and jobbers can tap into this massive community of buyers through an automated pipeline driven by their Activant business management system and our industry-leading replacement parts data,” said Paul Magin, senior director, content and connectivity, Activant.
“With more than 16 million parts available at any given time on eBay Motors, we’re always looking to increase value and selection for auto enthusiasts, and the new ListingExpert service from Activant is a big step in that direction,” said Famous Rhodes, director of parts and accessories, eBay Motors. “This is also a huge opportunity for aftermarket distributors to easily and seamlessly make their inventory available to millions of consumers on a global scale.”
Sellers use the Activant ListingExpert solution to select the products to be sold via eBay Motors. The ListingExpert service is designed to populate each listing with all required part information as well as pricing and shipping charges as established by the seller. Each resulting order is transmitted to the seller’s business management system and payment is processed through PayPal. The solution was tested and refined with input from several aftermarket distributors.
“This ListingExpert service gives the seller access to a global marketplace without significant new infrastructure, personnel or other resources,” Magin said. “Our initial group of distributors has been very enthusiastic about this solution.”
For more information regarding the Activant ListingExpert solution, please contact your Activant sales representative, call (800) 380-9015 or visit the company’s AAPEX Show exhibit (#2035) in Las Vegas.
About Activant Solutions
Activant Solutions Inc. is a leading technology provider of business management solutions serving small and medium-sized distributors and specialty retailers. Activant provides customers with industry-specific software, professional services, content, supply chain connectivity, and analytics. Over 30,000 customer locations use Activant to manage their day-to-day operations, in both USA and Canada. Activant’s systems are designed to help customers increase sales, boost productivity, operate more cost-efficiently, improve inventory turns and enhance trading partner relationships. Headquartered in Livermore, California, Activant has operations in Texas, Colorado, Illinois, Massachusetts, Pennsylvania, South Carolina, Utah, Canada, Ireland, and the United Kingdom. For more information, please visit www.activant.com.
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This announcement relating to Activant may contain statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, such as statements concerning trends, future technology or products, or Activant’s execution. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company’s results, including, without limitation, market demand for products and technology, the company’s ability to meet that market demand, the integration of Activant’s technology and products with technology and products supplied by others, the integration of Activant’s products into the businesses of its customers, customer acceptance of Activant’s products, and the retention and deployment of skilled Activant service providers. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements. Please refer to our most recently filed Quarterly Report on Form 10-Q for the period ended June 30, 2010, and our Annual Report on Form 10-K for the year ended September 30, 2009, each of which have been filed with the Securities and Exchange Commission and can be found through the Activant investor relations website at www.activant.com/company/investors, for a full discussion of the risks and other factors.
© 2010 Activant Solutions Inc. Note: Activant, the Activant stylized logo design and AConneX are registered trademarks, and Activant ListingExpert a trademark, of Activant Solutions Inc.
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Activant Sets Records for Parts-Data Timeliness and Volume
Las Vegas, NV, Nov. 1, 2010 – Activant Solutions Inc. set company records for aftermarket parts-data timeliness and volume over the past year, reflecting a comprehensive initiative designed to achieve “fast cycle” availability of fully validated and accurate manufacturer parts data.
Activant in the past year achieved a 50-percent increase in the volume of manufacturer data delivered to end users in 45 days or less from receipt, and a 33-percent reduction based on the new data cycle time. These gains were achieved while the company also dramatically increased the content available through its electronic catalog, with 40 percent more parts and application information added in 2010 than the previous year. The Activant® PartExpert® eCatalog is the industry’s most comprehensive product research and selling tool, featuring significantly more products, from more manufacturers, than any other electronic catalog.
“We have made significant progress in working with parts manufacturers to streamline their data feeds, and at the same time have aggressively invested in new resources to accelerate the delivery process,” said Paul Magin, senior director, catalog, Activant. “These are major gains, but they are only the first step in an ongoing process that will help us achieve our vision for minimal data latency combined with Activant’s longstanding reputation for accuracy.”
The cycle time gains in processing and releasing data are the result of programs that will set new industry benchmarks for the validation and delivery of aftermarket parts data, according to Magin. Key elements of this program include significantly improved supplier services, streamlined processes, close attention to customer needs, and the deployment of new technology.
“Gates has always found our product data partnership with Activant to be an important one,” said Lisa Henkel, director, product data services, Gates Corporation. “Activant provides a great way to share our rich content, including images, routing diagrams, installation instructions, with our most important asset, our customer.”
As part of its campaign to maintain superior parts coverage and accuracy while reducing cycle time, Activant established a Supplier Services Organization (SSO) in August 2009 with responsibility to maintain consistent communication with manufacturers. The SSO team is working with manufacturers to help increase the accuracy of their catalog information, thereby providing Activant with cleaner data for processing. Activant is conducting regional forums at which supplier representatives can share best practices information, and will have SSO representatives available to speak with customers in the Activant Aftermarket Supplier Lounge during this week’s AAPEX Show in Las Vegas.
Magin said suppliers now have regular contact with the Activant SSO team to schedule data feeds and quickly resolve issues related to data quality. This service – and inclusion in Activant’s eCatalog products – is provided free of charge.
An average of more than 100,000 new parts and 2.2 million applications are added to the Activant eCatalog each month. The company’s aftermarket parts data set covers more than 390 million North American applications.
The Activant catalog is published in 15 separate formats to address the requirements of virtually every popular aftermarket computer platform. In addition to the company’s extensive parts database – covering more than 900 manufacturers – the Activant PartExpert eCatalog suite includes the Activant Cover-to-Cover® graphical eCatalog module, BuyerAssist® electronic buyer’s guide, InterChange®: OE and competitive interchange module, and All Lines reference feature.
The PartExpert suite also incorporates a variety of features that help parts businesses to save time and increase profitability. These include VIN Lookup™, a comprehensive VIN decoding tool; the MCL-by-Make™ feature, which enables businesses to prioritize lookup results by brand, product design and price point; and Activant OE Carry-Forward®, which updates coverage to the next model year.
“We add tremendous value to supplier data to ensure it is presented in a way that best serves the needs of the thousands of parts professionals and service writers who use Activant eCatalogs,” Magin said. “Our catalog products are widely viewed as the most accurate, most complete and the easiest to use. Most importantly, they help sell the right part, the first time, and provide the information to sell more parts for more applications.”
For additional information regarding Activant’s parts-data publishing processes, please visit the Activant Aftermarket Supplier Lounge, Murano Room 3202-3203 in the Venetian Resort Hotel Casino (Hours: 8 a.m. to 5 p.m. Tuesday and Wednesday) or contact Doreen Slayter at (925) 454-6636 or doreen.slayter@activant.com.
About Activant Solutions
Activant Solutions Inc. is a leading technology provider of business management solutions serving small and medium-sized distributors and specialty retailers. Activant provides customers with industry-specific software, professional services, content, supply chain connectivity, and analytics. Over 30,000 customer locations use Activant to manage their day-to-day operations, in both USA and Canada. Activant’s systems are designed to help customers increase sales, boost productivity, operate more cost-efficiently, improve inventory turns and enhance trading partner relationships. Headquartered in Livermore, California, Activant has operations in Texas, Colorado, Illinois, Massachusetts, Pennsylvania, South Carolina, Utah, Canada, Ireland, and the United Kingdom. For more information, please visit www.activant.com.
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This announcement relating to Activant may contain statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, such as statements concerning trends, future technology or products, or Activant’s execution. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company’s results, including, without limitation, market demand for products and technology, the company’s ability to meet that market demand, the integration of Activant’s technology and products with technology and products supplied by others, the integration of Activant’s products into the businesses of its customers, customer acceptance of Activant’s products, and the retention and deployment of skilled Activant service providers. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements. Please refer to our most recently filed Quarterly Report on Form 10-Q for the period ended June 30, 2010, and our Annual Report on Form 10-K for the year ended September 30, 2009, each of which have been filed with the Securities and Exchange Commission and can be found through the Activant investor relations website at www.activant.com/company/investors, for a full discussion of the risks and other factors.
© 2010 Activant Solutions Inc. Note: Activant, the Activant stylized logo design, Activant Cover-to-Cover, Activant LaborExpert, Activant OE Carry-Forward, PartExpert, LaserCat, BuyerAssist and InterChange are registered trademarks, and Activant TireExpert, VIN Lookup, and MCL-by-Make trademarks, of Activant Solutions Inc.
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From Magic Quadrant to Top 10 ERP Vendors
Each year, Gartner publishes its magic quadrant of ERP vendors. This view of leading ERP software solutions is widely cited by software vendors when they are favorably represented in the quadrant, and it also makes for an appealing PowerPoint graphic. However, software vendors pay Gartner for its research, so the magic quadrant analysis isn’t necessarily 100% independent. While it may be a useful data point in an ERP selection process, the findings are subjective based on dimensions that may or may not indicate a ERP solution’s true position in the market. For these reasons, it can be difficult to draw meaningful conclusions from the quadrant by itself.
On the flip side, our team at Panorama uses a number of quantitative analyses to compare leading ERP vendors. According to our independent 2010 ERP Report published earlier this year, vendors vary fairly significantly in their positions in the marketplace, average implementation costs, benefits realized, and a variety of other metrics that measure true results and vendor viability. One of many key findings from our report is that certain ERP systems have higher rates of being short-listed and selected than others.
In analyzing our data for 1,600 ERP selection and implementation projects across the globe, we found that SAP is the most commonly short-listed ERP system, short-listed by 20% of the companies in our study. SAP is followed by Microsoft Dynamics (15%), Oracle eBusiness Suite (10%), and Epicor (8%). The top 10 ERP vendors are outlined in the table below, ranked by their frequency of being short-listed by organizations in our study:
Top 10 Short-Listed ERP Vendors
| ERP Vendor | Short-Listed Rate |
|---|---|
| SAP | 20.4% |
| Microsoft Dynamics | 14.9% |
| Oracle eBusiness Suite | 9.8% |
| Epicor Software Corporation | 7.9% |
| Infor Global Solutions | 4.1% |
| Oracle JD Edwards | 3.1% |
| Oracle PeopleSoft | 2.6% |
| IFS North America | 2.2% |
| Sage North America | 1.9% |
| Activant Solutions, Inc. | 1.4% |
However, a slightly different pattern emerges when we look at the rate software packages are selected from short-lists. As outlined in the table below, Peoplesoft is selected at a very high rate when the solution makes a short-list – 67% of the time it is on a company’s short-list. Peoplesoft is followed by Oracle’s eBusiness Suite (54%), SAP (54%), Infor (39%), and JD Edwards (38%).
Top 7 Selected ERP Vendors
| Selected ERP Vendor | Selection Rate |
|---|---|
| Oracle PeopleSoft | 66.7% |
| Oracle eBusiness Suite | 54.2% |
| SAP | 54.1% |
| Infor Global Solutions | 38.5% |
| Oracle JD Edwards | 37.5% |
| Epicor Software Corporation | 33.3% |
| Microsoft Dynamics | 22.9% |
Interpretation of the above data offers a couple of potential hypotheses. First, the fact that SAP is short-listed so often suggests that it’s strong brand name and leading market position could provide ERP buyers with a strong reason to consider the software. Second, the fact that Oracle products are selected at a higher rate suggests that the product may offer a stronger functional fit for companies represented in the study.
Although the frequency of short-list or selection may not be a good indicator of how well a particular software package fits an organization’s unique business requirements, it can be a useful quantitative and objective data point in assessing market trends among ERP vendors.
How would you evaluate your ERP vendor? Contribute to our research by participating in our 2010 ERP Benchmark Study or by rating your ERP vendor in our free online ERP database.
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Activant Summit Attracts 1,300 Distributors Interested in Operational Excellence
YARDLEY, PA, May 25, 2010 — More than 1,300 distributors met in Washington, DC, in March 2010, for Summit, Activant’s annual conference for wholesale distributors.
The three-day event included presentations by industry experts, educational sessions with Activant technology professionals, and networking events.
“A must! The industry experts, the networking, the classes, the opportunity to see new developments…make it all worth while!” said Joe MulChay, president of Genalco, Inc.
“Summit is a great opportunity to learn about new features,” adds Mike Chadwick, director of IT for Mercedes Medical. “It is also a great chance to meet and network with Activant employees as well as other users. Being able to talk to Activant employees face to face is great.”
Dan Szykowny, CFO of SG Supply agrees: “I don’t understand if you have the software and have this big investment in it how you cannot afford to attend Summit. This is the one time a year that you can get all the answers to your questions there and meet the people who are going to shape your technology future that run our businesses.”
Kevin Roach, executive vice president and general manager of Activant, addressed the assembled attendees and highlighted Activant vision for the future.
“Activant’s goal is to evolve the way distributors do business by offering them software and services that achieve best-in-class processes,” Roach told the audience.
Summit 2011 will take place in Orlando, FL in March 2011.
“Go,” recommends Sim Davis, controller of Southwestern Controls. “Do not debate it. Just go.”
Activant provides technology solutions and services to more than 4,200 wholesale distributors throughout North America. A leading technology provider for the distribution industry, Activant develops comprehensive enterprise software solutions to help distributors improve customer service and maximize the return on their technology investment. In addition, the company offers an Internet trading network that expedites sourcing, expands geographic reach, and streamlines transactions between distributors and manufacturers. Activant solutions are backed by a host of professional services, including support, consulting, and educational programs.
Activant Solutions Inc.™ (“Activant”) is a leading technology provider of business management solutions serving small and medium-sized retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Headquartered in Texas, Activant has operations in California, Colorado, Connecticut, Illinois, New Jersey, Pennsylvania, South Carolina, Utah, Canada, France, Ireland, and the United Kingdom.
For more information, please visit www.activant.com.
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© 2006, Activant Solutions Inc. All rights reserved. Activant, Activant Prophet 21, and the Activant logo are trademarks of Activant Solutions Inc. All other company or product names are the trademarks or registered trademarks of their respective companies.
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Increase Employee Productivity and Business Results with Activant Portal Designer Solution
ARDLEY, PA April 7, 2010 – Activant knows that the data within wholesale distributors’ Prophet 21® system can tell distributors a lot about the health of their businesses. For a long-term prognosis, in-depth reports can show where a business has been and trends for the future. But equally important to the health of any business are the quick check-ups that help to keep the business running smoothly.
“Activant developed the Activant Portal Designer™ product to help distributors keep on top of the daily changes that can affect key performance indicators,” said Kevin Roach, executive vice president and general manager of Activant’s wholesale distribution business. “The Activant Portal Designer software gives Prophet 21 system users the extensibility to design the specific, real-time views of data that the user considers most relevant to his or her role within the business.
“Beyond access to the data within the system, the Activant Portal Designer software also allows users to incorporate third party applications, further expanding their portal views and system capability,” added Roach. “All of this gives users actionable information, readily viewed on their computer screen for quicker business responses and more streamlined processes.”
Portals for access to business information can be assigned to users and inserted into the existing Prophet 21 infrastructure. For example, wholesale distributors can provide sales managers with insight into the opportunities set to close in the next 60 days or purchasing agents with a view into all open purchase orders where they are the buyer. The options are as numerous as the data and tables within the Prophet 21 database.
“The Activant Portal Designer software adds a new level of flexibility to our processes,” said Tom Silva, sales manager at EA Buschmann, Inc., a distributor in Lewiston, ME. “We created views for our users that give them access to data that allows them to be more efficient and productive.”
With our Activant Portal Designer solution, users can do such things as: drill down through portal views into individual transactions, gain quick access to ancillary documents, applications, and Web sites, select an option to obtain tracking information for shipments, and much more. Users can set up as many portal views as needed to constantly monitor important elements of their business and measure key performance indicators (KPIs).
In addition to immediate access to key data, the Activant Portal Designer solution allows users to augment portal reports and views by adding options that are not typically standard using a report writer. Among its many extended capabilities, the Activant Portal Designer solution can also provide access to external applications from within the Prophet 21 system.
Additionally, users can access information to do such things as allowing a sales manager to indicate that a sales rep is out sick for the day in order to view and reassign his required daily tasks to another rep for follow up. Users can also conditionally set buttons to appear next to their production orders if a drawing or document is attached to the transaction so they can quickly access that pertinent detail.
“Our Activant Portal Designer solution is part of Activant’s continuing effort to offer extensibility to distributors,” concluded Roach. “The more access distributors have to the data that’s most important to them, the more effective they can be in today’s economy where every competitive advantage puts that that much closer to success.”
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