MALVERN, PA – Dec. 2, 2002: Agilisys International, announced today the acquisition of Brain AG, a leading provider of specialized ERP and Supply Chain Execution software to automotive suppliers and other selected industries worldwide. Jim Schaper, Agilisys Chairman and CEO, has appointed Ernst Gemassmer to the post of Senior Vice President to lead the European operations of Brain Automotive. Post-transaction, Brain Automotive and Brain Industries will operate as separate business units of Agilisys International, a global provider of software solutions to the manufacturing industries. The acquisition was financed through funds managed by Golden Gate Capital and Parallax Capital Partners.
For over 20 years, Brain has been enhancing the productivity and competitiveness of automotive suppliers by providing them industry-specific software and consulting services tailored to meeting the demanding requirements of the automotive industry. With over 1,600 referenceable customers in nearly 19 countries, Brain’s single source, best-of-breed solutions keep automotive suppliers current, compliant and on the leading edge.
David Dominik, a Managing Director of Golden Gate Capital comments, “The financial support from our $700 million capital base will provide Brain a solid foundation to maintain and enhance its market leading position of providing high quality software solutions. Our keen interest in the company stems from the growing market trend of verticalization for enterprise software applications. We believe the combination of Agilisys and Brain, providing solutions highly specific to their respective industries, are differentially equipped to serve their customers, adapt to industry changes more rapidly, and enjoy a sustainable and defensible business model over the long-term.”
“This strategic acquisition of Brain provides Agilisys broader distribution capabilities outside North America, a defendable position in additional vertical markets, and a large global customer base. Additionally, with access to over $700m in investment capital, we will continue the evolution of the current product offerings and the global rollout of the new Brain Supply Web solutions. Also, Brain will be able to leverage the existing Agilisys supply chain solutions to deliver proven, high return on investment applications to their select markets” commented Jim Schaper, Chairman & CEO. “I look forward to continuing Brain’s rich heritage of product quality, successful customer implementation and continued focus on our customers and their individual requirements” said Ernst Gemassmer, Senior Vice President Brain Automotive International Operations.
About the investors
Golden Gate Capital http://www.goldengatecap.com/ is a San Francisco-based private equity investment firm with approximately $700 million of capital under management. Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. They target investments of up to $100 million in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, and in particular, have been very active in the enterprise software market.
Parallax Capital Partners, LLC http://www.parallaxcap.com/ is a private investment firm that dedicates its resources to the acquisition and management of technology related businesses. Parallax focuses on companies that generate revenues of between $10 and $100 million of revenue that require capital to either expand their existing business, make strategic acquisitions, or plan for ownership succession. In the Parallax commitment to building long-term value throughout companies, Parallax has established an extensive operational infrastructure which includes an active data center, functions such as accounting and finance, worldwide sales and marketing, research and development, customer support and human resources. Together, Parallax and its partners have participated in over 200 transactions ranging in size from $5 million to over $1 billion.
Agilisys is a global provider of business solutions to the manufacturing and distribution industries. The Agilisys solutions are best-in-class, industry-specific solutions that provide collaborative supply chain planning, Internet commerce, relationship management, and ERP capabilities to serve select industries: food and beverage, chemical, pharmaceutical, consumer packaged goods, biotechnology, automotive and related industries. The advantage of the Agilisys solutions comes from its selected industry focus and flexibility in tailoring the solution to a client’s specific business or supply chain needs. Agilisys provides business solutions to some of the world’s most well known and respected companies and brands, including Cargill, Unilever, Heinz, Heineken, Godiva, Organon, Valvoline, ICI, Glaxo SmithKline and Bristol Myers Squibb.