PSDI Acquires the A.R.M. Group
Provides PSDI With M|Net Integrated Supplier Network to Create End-to-End MRO
Electronic Commerce Marketplace
BEDFORD, Mass., Feb. 9 /PRNewswire/ -- PSDI (Nasdaq: PSDI), a leading provider of enterprise-wide maintenance management systems, today announced the acquisition of London, Ontario based Applied Resource Management Group (A.R.M. Group). A.R.M. Group is a privately-held organization that has built an electronic commerce network focused on reducing the transaction costs of Maintenance Repair Operations (MRO) products for buyers, distributors, and manufacturers. PSDI purchased the stock of A.R.M. Group for $7 million in cash and stock. In connection with the acquisition, management expects charges for in-process research and development charges of approximately $9 million in its fiscal second quarter.
A.R.M. Group's M|Net provides distributors and manufacturers with information on where products are in the supply chain, as well as demand and current inventory levels, in order to make more informed ordering and production decisions, lower costs, and optimize customer service. M|Net will be further enhanced to streamline the electronic buying and selling process between suppliers and users of MRO products. These enhancements will be designed to provide MRO buyers and sellers direct Internet access to products, pricing, and availability.
"The maintenance market is a clearly defined community that has realized the need for enterprise technology to automate business processes and to reduce procurement costs," said David Sample, PSDI CEO and president. "PSDI intends to leverage A.R.M.'s supply network, with more than 400 suppliers already online, to develop an end-to-end electronic marketplace for the procurement of MRO goods and services - more than a catalog, this will enhance buyer and supplier relationships by providing a low cost, Internet-based transaction vehicle governed by MAXIMO materials management business rules."
Stephen Caslick, president of A.R.M. Group, added, "Major global manufacturers like Rockwell Automation and its Allen-Bradley brand have recognized the value of A.R.M.'s technology and have committed to the M|Net solution. PSDI and ARM are at the forefront of the electronic procurement MRO surge, combining our strengths to deliver direct access to a large supplier base that will have the ability to execute Internet transactions from within the MAXIMO maintenance management system."
About A.R.M
A.R.M.'s success has evolved from helping businesses solve maintenance and materials management problems. A.R.M.'s direct involvement in on-site storeroom and procurement management provided the insight for practical long term solutions. A.R.M. launched the M|Net solution and emerged as a leader in shared inventory networks over which distributors, manufacturers and users of MRO material conduct their business. With offices in London, Ontario and Toledo, Ohio, A.R.M. Group employs 43 people and had integrated supplier network revenues for the year ended December 31, 1997 of approximately $1.4 million.
About PSDI
PSDI develops, markets and supports applications software used by businesses, government agencies, and other organizations to assist them in maintaining high-value capital assets such as plants, facilities and production equipment. The Company's products are designed to enable customers to reduce downtime, control maintenance expenses, cut spare parts inventories and costs, improve purchasing efficiency, and more effectively deploy productive assets, personnel and other resources.
Based in Bedford, Mass., PSDI markets its products through a direct sales force with sales offices throughout the United States, Canada, Argentina, Australia, UK, France, Germany, Hong Kong, Japan, Thailand, Sweden and the Netherlands, combined with a network of international sales agents.
NOTE: All PSDI news releases are available via the PSDI Home Page at psdi.com. Information on ARM Group and M|Net is available at www.armgroup.com and www.maintenet.com.
SOURCE PSDI
CO: PSDI; Applied Resource Management Group; A.R.M. Group
ST: Massachusetts; Ontario
IN: CPR
SU: TNM
02/09/98 16:29 EST prnewswire.com
|
