Feb. 11, 2004 -- Waukesha, WI -- RedPrairie Corp., a provider of global supply chain technology solutions, has announced the acquisition of LIS, one of the leading supply chain execution (SCE) providers in Europe. The combined companies will operate under the RedPrairie name with projected 2004 revenues of US$130 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of US$23 million. The company employs over 600 associates from offices in the U.S., U.K., mainland Europe and China. RedPrairie solutions are also offered by partners in eleven countries, including Latin America, Russia and South Africa.
Comments John Jazwiec, who will continue to lead the expanded RedPrairie as Company Leader, "This acquisition benefits both companies and our respective customers. We have complementary products, geographies and verticals enabling us to leverage our combined service and R&D expenditures to produce end-to-end supply chain solutions that create competitive advantage for our customers. More importantly, we share a common dedication to helping customers achieve measurable results from these solutions."
Adds Martin Hiscox, former CEO of LIS who now reports directly to Jazwiec as Europe, Middle East and Africa (EMEA) Leader, "At LIS, we have been able to more than double our business since 1998 while creating a profitable company respected by our mainly EMEA-based customers. Now, united with RedPrairie, we have the critical mass necessary to better serve the supply chain management needs of our global customers, with local, multi-lingual support. RedPrairie has a proven track record of supporting multiple systems profitably, with positive cash flow, and our systems have similar component architectures, which facilitates this. The collective systems create a product roadmap unequaled in the industry."
All RedPrairie locations, regardless of geography, will sell, implement and support the expanded product suite of the joint entity, as well as offer new capabilities, such as international trade logistics (ITL), mobile resource management and security applications, currently under development or acquisition.
Steve Banker, ARC Advisory Group Service Director for Supply Chain Management says, "This acquisition is not a surprise. It is becoming increasingly important for SCE suppliers to have global implementation and service capabilities. And of course multinational companies benefit greatly from working with global suppliers. While RedPrairie's previous presence in Europe was not insignificant, LIS had the second largest market share in Europe among the best of breed (non ERP) suppliers of WMS last year. This enhances RedPrairie's position as a prominent player in the global marketplace."
RedPrairie is acquiring LIS from the Permira Funds and management. The business has more than doubled in size since the buyout from Symbol Technologies Inc in 1998. Permira is a leading international private equity specialist. As an independent business, Permira is owned and controlled by its partners. In October 2003, Permira announced the final closing of a third pan-European fund, Permira Europe III, which, together with commitments from Permira, totals over Euro 5 billion. This is Europe's largest private equity fund. The firm's team of over 80, based in Frankfurt, London, Milan, New York, Paris and Stockholm, advises the Permira Funds with a total committed capital of Euro 11 billion. Since 1985, the Permira Funds have completed over 260 private equity transactions. During the last 3 years, the Permira Funds have completed 12 transactions with a combined transaction value of over Euro 16 billion.
RedPrairie's RFID-enabled suite of supply chain execution solutions (DigitaLogistix) provide transportation, productivity and distribution management capabilities, enhanced with optimization components for real-time visibility, quality control, suppliercollaboration and performance management. RedPrairie provides industry-tailored solutions for many markets, including consumer goods, retail, food and beverage, high tech / electronics, third party logistics, industrial / wholesale, automotive and service parts, pharmaceuticals, and healthcare. Customers includeHewlett-Packard, Sony, Thames Water, Procter & Gamble, Nestle, Panasonic, Georgia-Pacific, Eveready, Merck Sharp & Dohme, Unilever, Exel, GE, and Amazon.com.
For additional information, call 1.877.733.7724, or access www.RedPrairie.com,
