Agilysys Acquires Eatec Corporation
- Eatec is a leading provider of inventory and procurement software for the hospitality and foodservice industries
- Further differentiates Agilysys as leading developer and marketer of inventory and procurement software
- Expands Agilysys’ integrated end-to-end open solutions and enhances Agilysys’ leadership position in the hospitality and foodservice industries
BOCA RATON, Fla. | Agilysys, Inc. (NASDAQ: AGYS), a leading provider of innovative IT and hospitality software solutions, today announced it has acquired Eatec Corporation, a privately held developer and marketer of inventory and procurement software with U.S. headquarters in Emeryville, Calif.
Eatec’s software, EatecNetX, is a recognized leading, open architecture-based, inventory and procurement management system. It provides customers with the data and information necessary to increase sales, reduce product costs, improve back-office productivity and increase profitability. Eatec customers include well-known restaurants, hotels, stadiums and entertainment venues in North America and around the world as well as many public service institutions.
EatecNetX’s core functions include purchasing, inventory, recipe, forecasting, production and sales analysis. Additionally, the solution offers catering, restaurant, concessions, manufacturing, retail/merchandising and airline catering modules in one integrated solution.
“This acquisition further enhances our position as a leading inventory and procurement solution provider to the hospitality and foodservice markets,” said Arthur Rhein, chairman, president and chief executive officer of Agilysys. “Similar to our previous acquisitions of Visual One Systems and InfoGenesis, the Eatec acquisition complements and expands our offerings, allowing us to better serve our customers.”
In addition to being a stand-alone software application, EatecNetX will be interfaced with Agilysys’ point-of-sale offerings to create a complete end-to-end solution for customers in the foodservice industry.
Agilysys hospitality solution offerings are among the most comprehensive in the market, with solutions to cover the hospitality industry’s information technology needs. Agilysys hospitality solutions include property management, inventory procurement, point-of-sale, golf management, club management, condo accounting, spa, sales and catering, dining reservations, business analytics and document management.
The purchase price of $23.2 million, net of cash, will be funded with cash on hand. Eatec has revenues of approximately $8 million and EBITDA margins in excess of 20%.
Forward-Looking Language | Portions of this release, particularly the statements made by management and those that are not historical facts, are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current assumptions and expectations, and are subject to risks and uncertainties, many of which are beyond the control of Agilysys. Many factors could cause Agilysys actual results to differ materially from those anticipated by the forward-looking statements. These factors include those referenced in the Annual Report on Form 10-K or as may be described from time to time in Agilysys subsequent Securities and Exchange Commission (SEC) filings.
Potential factors that could cause actual results to differ materially from those expressed or implied by such statements include, but are not limited to, those relating to Agilysys long-term financial goals, anticipated revenue gains, sales volume, margin improvements, cost savings, capital expenditures, depreciation and amortization, and new product introductions.
Other associated risks include geographic factors, political and economic risks, the actions of Agilysys competitors, changes in economic or industry conditions or in the markets served by Agilysys, and the ability to appropriately integrate and derive performance from acquisitions, strategic alliances, and joint ventures.
In addition, this release contains time-sensitive information and reflects management's best analysis only as of the date of this release. Agilysys does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Information on the potential factors that could affect Agilysys actual results of operations is included in its filings with the SEC, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended March 31, 2007. Interested persons can obtain it free at the SEC’s website, .
About Eatec Corporation | Eatec Corporation is a leading provider of enterprise back-office software and services for the foodservice and hospitality industries. EatecNetX, Eatec's proven software solution, is recognized as a state-of-the-art foodservice management system that is centralized, scalable, web-centric and user-friendly for food and beverage operators of every variety. EatecNetX helps companies reduce costs and improve operational efficiencies, resulting in a quick return on investment. Eatec clients include restaurant chains, hotels, resorts, casinos, stadiums and arenas, convention centers, universities, schools K-12, theme parks, airline caterers and supermarket foodservice.
About Agilysys, Inc. | Agilysys is a leading provider of innovative IT solutions to corporate and public-sector customers, with special expertise in select markets, including retail and hospitality. The company uses technology — including hardware, software and services — to help customers resolve their most complicated IT needs. The company possesses expertise in enterprise architecture and high availability, infrastructure optimization, storage and resource management, identity management and business continuity; and provides industry-specific software, services and expertise to the retail and hospitality markets. Headquartered in Boca Raton, Fla., Agilysys operates extensively throughout North America, with additional sales offices in the United Kingdom and China. For more information, visit .
