Scala Business Solutions is merging with Epicor, creating what the groups say will be the largest independent mid-market provider of collaborative enterprise resource planning, customer relationship management and supply chain management applications based on Microsoft's .Net platform and Web services.
Scala Africa CEO Shamik Sinha says the merger will not have major short-term implications for the local operation, although it would possibly expand the product range.
However, the merger would create a stronger group overall.
"Epicor does not have much of a presence in the developing market, and that includes places like SA and China, while Scala does not have a big stronghold in the North American market," he says.
He says the combined company will expand its global presence with worldwide coverage of sales, consulting and support for mid-market and large multinationals as well as local enterprises.
"Both Epicor and Scala customers will be served by a global entity with the reach and scale to more effectively support their operations, and will be well positioned for growth with local support in emerging markets such as throughout Africa."
In terms of the deal Epicor will make a public offer for Scala's ordinary shares, with the expected aggregate value of the deal estimated at $87 million.
The combined company plans to further support and develop iScala products. It says that in the long-term its product offerings will be developed using the functional synergies of all products and the integration advantages of .Net and Web services.
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