SVI Holdings, the AMEX listed US subsidiary of JSE listed software group Softline Limited, today announced the acquisition of Island Pacific Systems (IPS) for R215 million (US$35m) significantly strengthening SVI`s position as a leading supplier of software solutions to the retail industry.
Commenting on the acquisition Softline CEO Ivan Epstein said "Island Pacific is one of the world`s leading retail software companies with a strong client base, state-of-the art technology and a talented management team. With a home office in Irvine, California (USA), and a branch office in the United Kingdom, IPS employs 130 people".
"The addition of Island Pacific to SVI`s retail offering, is a significant step for SVI towards achieving its objective of becoming the premier supplier of retail software solutions around the globe".
IPS`s software automates the full scope of a retailers operation from the planning and purchasing functions through to the distribution and final sale of goods. IPS`s systems are marketed to specialty and department stores and can cater for chains which have thousands of stores.
The acquisition of IPS adds a number of premier clients to SVI`s already impressive client list. The company`s high profile client base includes Nike, Disney Stores Inc., Polo Ralph Lauren, J.C. Penney, Timberland, Armani Exchange, Habitat UK, Country Road, The Limited, Laura Ashley, Rebel Sports, Hamleys Limited, Victoria`s Secret stores and many others.
"The combination of SVI`s existing leading edge Point-of-Sale offering (SVI-Post), coupled with IPS`s state-of-the-art merchandising and retail back office systems, allows SVI to offer one of the most complete, flexible and comprehensive software solutions available to the retail industry globally" commented Epstein.
Capitalizing on this combined technical strength and large, quality domestic and foreign client base, the opportunity for significant growth and expansion is clearly present.
Further to this Applied Retail Solutions (ARS), acquired in July 1998, and IPS presently service a number of the same clients. The technology and systems complement and integrate with each other, therefore SVI anticipates being able to cross-market software to its expanded client base as well as pursue a wider range of Tier 1 and Tier 2 retailers with a total software solution.
Building on numerous years experience in retail software development, IPS` I3 family of products combines comprehensive, integrated merchandise management with supporting retail business functions.
IPS` I3 Merchandising product defines the core of the IPS software solution and like all the I3 modules, I3 Merchandising can be used internationally, having multiple language and currency capabilities.
IPS` other I3 products include I3 Financials, which provides software functionality for Accounts Payable, General Ledger, and Fixed Assets; I3 Sales Audit, guaranteeing accurate data at any point in the audit cycle, and I3 Warehouse, a user-definable locator system, which controls the physical flow of merchandise.
IPS has developed strategic partnerships with several highly respected organizations, including International Business Machines (IBM), Sun Microsystems, Tamalpais Group, Inc., Computech Resources, Kurt Salmon Associates, Inc., Balance Point Systems, Applied Intelligence Group, Inc., and Retail Aspect.
The acquisition of IPS follows closely on SVI`s announcement last month that it had disposed of UK based subsidiary IBIS Systems for $18 million in order to further concentrate its resources on retail software solutions. The addition of IPS demonstrates this focus.
The acquisition of IPS clearly fits within the group`s stated investment criteria - the technology is proprietary; sold on a license fee basis; with a quality installed base of clients; generating recurring revenue.
Epstein commented, "The acquisition of IPS and recent announcement by SVI that they had entered into a co-marketing agreement with IBM to integrate key IBM e-business software with SVI`s e-Host, a new retail e-commerce software solution - present exciting prospects for SVI into the millennium".
SVI Holdings is focused on becoming a leading global provider of enterprise software solutions for the retail industry. These solutions include point of sale, retail marketing and merchandising, training, and retail financial systems. SVI maintains offices and subsidiaries in the United States, United Kingdom, Australia and South Africa. The company has a worldwide base of more than 83,000 terminals among such major clients as Home Depot, OfficeMax, Crate & Barrel, the U.S. Postal Service, Musicland, Charming Stores and others.
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