Exact intends to acquire US-based Kewill ERP

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Exact Holding N.V. (EURONEXT: EXACT) today announced its intention to acquire Kewill ERP Inc., a division of Kewill Systems plc (LSE: KWL) provider of supply chain management software, for USD 19.0 million (approx. EUR 21 million) in cash. Based in the USA, Kewill ERP provides a scaleable suite of Microsoft Windows-based manufacturing software solutions under the brand names JobBOSS, MAX and Alliance/MFG. With JobBOSS, Kewill ERP has a leading position in the ERP software market for small to mid-sized manufacturers in North America.

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border="0"/>JobBOSS products are developed specifically for the job shop manufacturing industry that seeks a job-driven made-to-order ERP application. The product will complement Exact’s range of manufacturing products. MAX and Alliance/MFG are products designed to cater for the discrete (make-to-stock) manufacturing market. The functionality of the latter two products is comparable to Exact's manufacturing and distribution product range in the North American market.

Kewill ERP Inc’s revenues are generated from licenses, support contracts, classroom training and on-site implementations. Kewill ERP’s main facility is in Minneapolis (Minnesota, USA), with smaller operations in San Francisco, Santa Barbara (California, USA) and Leicester (UK). Kewill ERP currently has approximately 200 employees. 

In the year ended 31 March 2002, Kewill ERP Inc generated revenues of approximately USD 28 million (approx. EUR 30 million) and a profit before interest and tax (EBITA) of USD 1.2 million (approx. EUR 1.3 million). Exact expects that this acquisition will have a neutral effect on the profitability for 2002.

The acquisition is yet another example of Exact’s commitment to increase its presence in North America. Exact will strengthen its position in the North American small to mid-sized market for manufacturing and distribution by adding many thousands of manufacturing and distribution customers to its installed customer base.

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style="mso-ansi-language: EN-GB; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: Times New Roman">Kewill ERP will continue to operate as a separate business unit of Exact Software North America, selling, supporting and maintaining the current products (JobBOSS, Max and Alliance/MFG).

The two companies will start to plan the integration of the current Kewill products with the Exact Globe 2000 and e-Synergy products, allowing Kewill to offer integrated front- and back-office solutions with CRM, HRM and service management.

style="mso-ansi-language: EN-GB; mso-bidi-font-size: 12.0pt; mso-bidi-font-family: Times New Roman">The integration with the Exact organization and its products will allow Kewill ERP to benefit from Exact’s worldwide R&D organization and financial resources. Furthermore, Kewill ERP will be able to increase its competitive edge and service levels by utilizing the infrastructure of the Exact offices and partner network in North America and internationally. Kewill ERP Inc. will be renamed to Exact Software to avoid confusion in the market with Kewill Systems plc. 

The acquisition is subject to the approval of the Extraordinary Shareholders’ Meeting of Kewill Systems plc, to be held in June 2002.

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Exact Software is a leading developer of modern accounting, payroll, CRM, ERP and e-business software solutions. The products offer detailed functionality in every business process and they support rapid implementation. Since its beginnings in 1984, Exact, now with more than 1,800 employees worldwide, has become one of the major global players in the field of business software solutions for the mid-market. It is present in Europe, the Middle East, Africa, South and North America and Asia. Exact’s corporate headquarters are located in Delft, the Netherlands. The Exact Group has a clear mission: being one of the top global providers in the mid-market of integrated accounting, ERP, HRM and CRM solutions in an electronic world.

Exact Holding N.V. has been listed as EXACT on the Official Market of Euronext Amsterdam Stock Exchange since June 1999.

For more information please contact:
Exact Holding N.V.
Phone: +31 15

2613714

Bert Groenewegen, Chief Financial Officer

bert.groenewegen@exactsoftware.com

News Source : Exact intends to acquire US-based Kewill ERP