Product category:
Enterprise Resource Planning software (ERP)
News Release from: Epicor
Edited by the Manufacturingtalk Editorial
Team on 08 December 2005
Epicor Announces Acquisition of CRS
Retail Systems
Acquisition Extends Epicor's Leadership in Middle Market Enterprise Applications into Retail Industry Vertical
Epicor Software Corporation, a leading provider of enterprise software solutions, has announced that it has completed the acquisition of privately held CRS Retail Systems based in Newburgh, NY, in an all cash transaction for approximately $121 million Epicor will finance the transaction utilising existing credit facilities and cash-on-hand
This article was originally published on Manufacturingtalk on 6 Jun 2002 at 8.00am (UK)
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CRS was purchased from Accel-KKR, a technology focused private investment firm.
The acquisition of CRS, the premier provider of merchandising and point-of-sale (POS) software solutions to the retail industry, extends Epicor's position as the leading provider of complete end-to-end enterprise solutions to include the retail sector.
CRS currently serves approximately 140 customers worldwide, including 15 of the top 100 specialty retailers such as Coach, J.Crew, GNC, Chico's, Barnes and Noble, Cache and Foot Locker The acquisition is expected to be accretive to Epicor on an earnings per share basis beginning in 2006 and provide incremental revenues of approximately $70 million for the year ended December 31, 2006.
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"CRS is perfectly aligned with our strategy of providing complete, end-to-end enterprise solutions for key industry verticals," said George Klaus, chairman and CEO of Epicor.
"This acquisition enables the combined company to make use of Microsoft.NET and Web services technology to deliver an integrated, post-to-host experience from point-of-sale, through the retail supply chain, to the back office.
This integrated solution provides Epicor with an important competitive differentiator, and at the same time, enhances our customers' ability to drive business performance.
In recent years, Epicor has demonstrated an excellent track record of augmenting steady growth with strategic acquisitions.
We expect to capitalise on the new market opportunities that CRS will bring to Epicor to deliver continued profitable growth and enhanced shareholder value.
"CRS provides real-time store and multi-channel management solutions for today's innovative retailers that seek to optimise each customer touch point across all available sales channels, including stores, online and catalog operations.
CRS' solutions help retailers integrate their sales channels, order management, inventory and other operations in order to have the right information at the right time, including store-level business intelligence.
Each of CRS' software solutions is built on a solid, open standards-based architecture with deep functionality and flexibility to protect its customers' current IT investments and support future business needs.
"We are very pleased to be joining forces with Epicor, a company with a long, successful history of delivering end-to-end industry-specific solutions," said Kathy Frommer, Former CEO of CRS.
"With our combined resources, we are well positioned for continued innovation and growth.
We look forward to delivering even greater value to our customers in the future as we create a new standard for retail solutions." "CRS will be operated as a separate division of Epicor led by Kathy Frommer, who will serve as General Manager of the division and as a member of Epicor's senior management team," said Mark Duffell, President and COO of Epicor.
"In addition, we are delighted that Kathy and her senior team at CRS have agreed to long term employment with the combined companies that should ensure a seamless transition for CRS customers and employees, alike." Epicor and CRS plan to make use of their significant combined experience with Microsoft.NET technology and service-oriented architecture (SOA) to provide retailers with more flexible enterprise integration, increased scalability and expanded analytics capabilities.
The architecture allows for quick, flexible connectivity to other applications, whether distributed order management for multi-channel, multi-service operations, or key sales or labor business intelligence systems.
CRS' newly architected.NET retail store applications have been designed to be integrated with other retail and enterprise applications.
The Company plans to provide integration between CRS' Retail Store and Epicor's supply chain and financial management applications to create a full end-to-end solution for retailers.
In addition, Epicor's infrastructure and global presence is expected to provide a strong platform for CRS to expand into rapidly growing international retail markets such as Central and Eastern Europe and Asia Pacific.
"CRS gives Epicor an enterprise retail suite, but more importantly a proven point-of-sale (POS) platform, which includes Enterprise Selling, CRS' global inventory and distributed order management capabilities," said Rob Garf, research director with AMR Research.
"Epicor's acquisition of Scala in 2004 gave it a product and a presence in Europe.
This existing groundwork allows CRS customers to manage global expansion more effectively." Richard Nance, CIO of Tuesday Morning said, "As a current customer of both Epicor and CRS, we believe the acquisition will enable Tuesday Morning to derive even greater value from our investment.
The ability to deliver a single, enterprise solution that integrates all aspects of the retail experience from point-of-sale to the back office is unique in the market.
We have been very satisfied with both Epicor's accounting package and CRS's point-of-sale system and look forward to the synergy of the products in the future." Epicor does not anticipate that the CRS acquisition will materially contribute to revenues or adjusted earnings per share in the fourth quarter of 2005.
For the full-year 2006, the Company now expects revenues to be approximately $384 million, which includes approximately $70 million of revenues contributed from the CRS business.
In addition, Epicor now expects full-year 2006 adjusted earnings per diluted share to be $0.77 to $0.79, which includes $0.02 to $0.04 contributed from the CRS business, and is based on a weighted average share count of 58 million shares.
As a result of acquisition, beginning in 2006, Epicor expects to derive operational synergies and cost reductions of approximately $1.0 million on an annual basis going-forward.
In addition, acquisition and restructuring costs will be incurred in the fourth quarter 2005 and reflected in the Company's GAAP earnings.
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