Manugistics Acquires STG Holdings, Inc.
Expands Advanced Manufacturing Planning, Scheduling and Simulation Capabilities
ROCKVILLE, Md., and LONDON, Jan. 23 /PRNewswire/ -- Manugistics Group, Inc. (Nasdaq: MANU), the premier global provider of Enterprise Profit Optimization(TM) (EPO) solutions -- the powerful combination of supply chain management and pricing and revenue optimization solutions -- today announced that it has acquired privately-held STG Holdings, Inc. (STG), headquartered in London, England. STG is a leading developer of advanced strategic, tactical and operational planning, scheduling and simulation software for single factory and multi-factory enterprises. The acquisition of STG allows Manugistics to enhance its core supply chain solutions with more advanced, comprehensive end-to-end manufacturing and scheduling solutions.
Under the terms of the acquisition agreement, Manugistics will initially issue shares of its common stock valued at approximately $4.5 million and pay approximately $1.5 million cash in exchange for all outstanding shares, options and warrants of STG. Under the terms of the acquisition, Manugistics will, if certain revenue based performance requirements are met, pay the equity holders additional consideration of up to $28 million, in common stock or cash, at the end of 21 months. This acquisition will be accounted for as a purchase transaction and will result in the recording of an intangible asset. Manugistics expects this acquisition to have an accretive effect on earnings, excluding the amortization of this intangible asset.
"Enhancing Manugistics core supply chain business with STG's unique capabilities and expertise in advanced planning, scheduling and simulation for multi-factory manufacturing will be a key differentiator in the market," said Greg Owens, Manugistics chief executive officer and chairman designate. "STG capabilities will enable Manugistics to offer an even more advanced and comprehensive manufacturing solutions to our clients. In addition, the acquisition also builds on Manugistics' business strategy of aggressively investing in new, best of breed, differentiating products and solutions that deliver results."
STG's OPT(R) Solution Suite, an advanced Theory of Constraints-based business solution, provides manufacturing centric planning and scheduling solutions. STG has 16 years of proven product success in the Automotive, Defense and Aerospace, High Technology and Complex Process markets with over 300 worldwide clients including Boeing, Xerox, Caterpillar, Brother Industries, Mars Electronics International and Volvo Europe Trucks NV.
"STG is excited to be joining with Manugistics in extending and enhancing the collaborative supply chain software offered by both companies to clients across the globe," said Dr. Stephen Franks, STG's Managing Director. "Manugistics extensive global sales and marketing together with STG's business operations in Europe, Africa and the Pacific will further the combined international business strategy of penetrating key growth markets."
About STG Holdings, Inc.
STG, a Delaware corp., is based in London, England. Its OPT Technology is a unique thoughtware and software suite which has dramatically improved performance for many companies around the world. Established in 1987, STG has successfully installed OPT solutions in hundreds of businesses through an international network of offices and affiliates. The OPT Solution Suite from STG is designed to bring clarity to the supply chain and agility to decision making and to enhance the performance of businesses. STG currently has direct operations in Dallas, Texas, London, England, Johannesburg, South Africa and Sydney, Australia; and collaborates with distributors in South America and mainland Europe.
OPT(R) and ST-POINT(R) are registered trademarks of STG Limited.
About Manugistics Group, Inc.
Headquartered in Rockville, Md., Manugistics Group, Inc. is the premiere global provider of Enterprise Profit Optimization (EPO) solutions that combine supply chain management and pricing and revenue optimization. Manugistics' EPO solutions help enterprises and marketplaces lower operating costs, enhance profitability and accelerate growth. The company's list of clients includes industry leaders such as 3Com, Amazon.com, BP Amoco, Brown & Williamson, Coca- Cola Bottling, Compaq, DuPont, eConnections, Ford, FreightWise, General Electric, Harley-Davidson, Hormel, Marriott, Nestle, Timberland, Unilever and United Airlines. For more information, go to manugistics.com .
For additional information regarding this announcement, contact the Manugistics NEWSBUREAU hotline at 301-984-5330.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, competition, risks related to quarterly performance, risks of system interruption, management of potential growth, and risks of new business areas, international expansion, business combinations, and strategic alliances. More information about factors that potentially could affect Manugistics financial results is included in Manugistics filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended February 29, 2000 and Quarterly Report on Form 10-Q for the quarter ended November 30, 2000.
Manugistics is a registered trademark, and the Manugistics logo, the phrase "Leveraged Intelligence," and Enterprise Profit Optimization, NetWORKS, ExchangeWORKS and WebConnect are trademarks of Manugistics, Inc. All other product or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
SOURCE Manugistics Group, Inc.
CO: Manugistics Group, Inc.
ST: Maryland, England
IN: CPR MLM
SU: TNM
01/23/2001 09:22 EST prnewswire.com |
