Infor Agrees to Buy MAPICS
Staff -- Industrial Distribution, 3/1/2005
Infor Global Solutions, a provider of enterprise resource planning and supply chain solutions for manufacturing and distribution industries, has purchased MAPICS, Inc., a provider of enterprise software solutions. The announcement was made Jan. 27.
Rick Parker, Infor's vice president for global marketing/discreet manufacturing group, said that the acquisition enhances Infor's ability to compete globally.
"MAPICS gives us a significant increase in the number of customers," Parker said, estimating that they will now have nearly 4,500 customers. "They also expand our reach as we move more into China, Japan and Malaysia. We've been focusing on that area, and this will help us move into that area in a more aggressive way."
The combined companies will have more than 17,500 customers in more than 70 countries. MAPICS' experience in Asia was especially attractive to Infor.
"We'll have far more in the way of sales channels," Parker said. "And also, deeper support and services across the whole Pacific Rim...MAPICS products have been up and operating in the Rim for some time now. These are quality-tested products for Asia and the Pacific area."
Parker added that MAPICS gives Infor "even deeper industry expertise. They've been around for about 25 years and have deep domain experts, which are of high values to us."
"With the industry consolidation currently taking place, it was imperative that MAPICS combine to create a larger company to help ensure the continued success of our customers...We believe that Infor's offer is a win for our shareholders, and that it provides a long-term future for our business," Dick Cook, MAPICS' president and chief executive officer, said in a statement.
"Both sides saw it as a good fit. Infor's strategy is to grow through both acquisition and organic growth...When we look at acquisitions, we look at companies that fit into our vertical market strategy," Parker said.
Outside of some redundant jobs, Parker said he did not anticipate eliminating any positions once the sale becomes official. Both Infor's and MAPICS' headquarters are located in the Atlanta area, and Parker said he expects Infor to move into MAPICS headquarters later this year. The sale is expected to become final in the second quarter of fiscal year 2005. The MAPICS deal was the 12th acquisition Infor has completed since May of 2002, Parker said.













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