Copenhagen, Denmark— August 10, 2004 — Leading systems integrator TECTURA, with offices throughout North America and Germany, and leading global solution provider Aston Business Solutions today announced that the two companies are joining forces to become the world leader in integrated business solutions for mid-market companies and large-enterprise divisions. The combined companies will be backed by a team of investors led by Pequot Capital, one of the largest privately owned investment firms in the United States.
Today’s mid-market companies require advanced business systems to efficiently manage such areas as marketing, sales, operations, and finance—and expect the same level of flexibility and functionality as large enterprises. Increasingly, they require global partners to service multiple locations in multiple countries. For the past two years, Aston Business Solutions and TECTURA have independently followed similar international expansion strategies for meeting this mid-market need.
By joining forces, the two companies are taking the first step in a multi-phased business plan aimed at fulfilling their shared vision--the establishment of a new company that is indisputably the largest mid-market services company based on number of employees and operating locations, and that is the world’s strongest in terms of depth of expertise in Microsoft Business Solutions offerings.
Today, with offices in 50 cities across Europe (U.K., Germany, Denmark, Spain, Holland), U.S.A, Canada, and Australia, with implementations in over 50 countries, with more than 4,000 customers worldwide, and with approximately 1,000 employees worldwide dedicated to delivering Microsoft technologies, the new company is unquestionably the worldwide mid-market services leader. The company has laid out a healthy organic and expansion business plan--with organic growth rates from 10 to 20% dependent on geography--that will guide the company towards being a $500M services business with 2,500 team members by 2007. During its first 12 months the company will generate revenue in excess of $150 million.
Microsoft’s expansion into the mid-market business applications space--which began three years ago with the acquisition of U.S.-based Great Plains, and later Denmark-based Navision--opens the door to huge business opportunities for integrated business solutions. The current market is highly fragmented, with thousands of small partners but very few international players. Microsoft’s objective for this space is to reach $10B in revenue by 2011 (presently revenue is $700M), which represents an annual growth rate of 35%. This steep growth requires not only thousands of local partners, but more significantly, strong global business partners to serve the increasing demand from mid-market companies and large-enterprise divisions.
When the management teams at TECTURA and Aston Business Solutions began discussions, they quickly realized that joining forces would present a perfect match--culturally, strategically, and geographically. As detailed planning sessions began, the two teams immediately discovered that the foundation for a new combined company was essentially in place. A new company that ultimately would be based on a set of shared core values, a strong common passion to build a global services company, and a business culture centered on an unwavering commitment to employees, to clients, and to its partner, Microsoft.
“Both Aston Business Solutions and TECTURA have worked intensely the past couple of years transforming how we do business with our employees, with our customers, with Microsoft, and with other Microsoft business partners to meet the demanding needs of the global mid-market. By joining forces, we have a unique opportunity to accelerate this business transformation globally by forming an integrated business solutions company focused on mid-market business enterprises worldwide,” said Terry Petrzelka, CEO of TECTURA and the CEO of the newly formed company.
“I am very proud that we were able to make this happen,” said Mogens Elsberg, CEO of Aston Business Solutions. “Since refocusing the company in 2001, we have worked toward this goal. Without this agreement we would probably be two years away from achieving the goal, so this is really the perfect match for Aston Business Solutions. It takes us to the next level faster than we could have done on our own, to the benefit of employees and customers, and it presents a very strong and secure growth path going forward--one backed by an ambitious acquisition strategy that allows the company to participate in the necessary continued consolidation of the industry,” said Elsberg.
“Congratulations to TECTURA and Aston Business Solutions on their decision to join forces. Customers need large global solution providers with the capacity and expertise to support not only enterprises and their divisions, but also mid-market companies that increasingly need service in multiple locations and countries.” said Doug Burgum, Sr. Vice President, Microsoft Corporation.
Backing this transaction is Pequot Ventures, the private equity arm of Pequot Capital Management—one of the largest privately owned investment firms in the United States, with more than $7B of assets under management. With approximately $1.7B in committed capital, Pequot’s Private Equity and Venture funds create value by bringing energy and substantial sector expertise to its portfolio companies through the collective intellectual capital, deep operating experience, and the extensive network of its investment team.
“We have recognized the need for a national and global partner to support the mid-market and Microsoft’s product offerings in this segment. Over the course of the last year we have assisted TECTURA in growing into one of the largest geographic footprints serving mid market customers in North America, as well as its more recent expansion into Germany. The coming together with Aston Business Solutions has accelerated the expansion plans and the new company will have the largest presence in North America and Europe serving the mid-market business customer. The combined company has a talented group of executives, system engineering and support personnel, and we look forward to meeting the needs of our existing and growing customer base, as well as our expansion into additional global markets,” said Gerald A. Poch, Managing Director of Pequot Capital.
The new company will be Microsoft’s largest partner by far within the Axapta and Navision product lines, and one of the leading partners in the Great Plains, Solomon, and MS-CRM product lines. Additionally, the new company has a solid base in more traditional Microsoft technology that allows it to develop and market very strong integrated offerings covering the full spectrum of Microsoft products. The new company will continue to build on the vertical industry strategy pursued by both Aston Business Solutions and TECTURA, which includes tailored offerings for such industries as aerospace, food and chemical process manufacturing, packaging, discrete and repetitive manufacturing, equipment rental, agriculture (growers and packers), public sector (state and municipal), healthcare, life sciences, consumer packaged goods (CPG), and advanced distribution.
Effective immediately, the new executive management team will include: Terry Petrzelka, global CEO; Greg Capitol, global CFO, John Matterson, North American Operations; Claus Hansen, European Operations; Joerg Niermann, German Operations, Peter Maggs, Australian Operations, Aston Business Solutions’ CEO Mogens Elsberg and CFO Anders Boyer will assist over the next quarter with the integration of the two companies.
“When I took over as CEO of Aston Business Solutions in 2001, the Board of Directors asked me to solve two major tasks: to establish a new focused and sustainable strategy, trimming the company accordingly and making it profitable; and to establish the foundation for a new ownership structure, thus creating a new financial platform for continued growth that would allow the company to become the world’s #1 provider. Both of these tasks are now completed, and in line with my agreement with the Board of Directors of Aston Business Solutions, I have asked to be relieved from my daily duties,” said Mogens Elsberg. Anders Boyer, Aston Business Solutions’ CFO, will be leaving the company on the same grounds.
Once integration is well underway and Mogens Elsberg leaves the daily operations, he will continue his involvement in the new company as an Advisor to TECTURA’s Executive Leadership Team and the Board of TECTURA, lending guidance through his international insight and experience.
The financial transaction consists of a Stock Purchase Agreement, pursuant to which TECTURA Corporation will acquire 100% of the shares in Aston Business Solutions (Holding) A/S from AG Holding af 2001 A/S and other parties.
The continuing company TECTURA Corporation, will operate under the brand name TECTURA. The company’s global and North American headquarters will be located in San Mateo, Calif., and the European headquarters will be based in Copenhagen, Denmark, at the former site of Aston Business Solutions’ headquarters.
Aston Business Solutions NL
Houtsniplaan 1C
6865 XZ ARNHEM (Doorwerth)
Phone: +31(0)26 339 64 40
Fax: +31(0)26 339 64 49
www.astonit.com
info@astonit.nl
Further Information
Terry Petrzelka, CEO, TECTURA
Office: (+1) 650 345 7707
TPetrzelka@tectura.com
Mogens Elsberg, CEO, Aston Business Solutions
Mobile: (+45) 7242 1100
Mobile: (+1) 480 225 4522
mogens.elsberg@astonit.com
Press contact:
Steen Laursen, Corporate Communications, TECTURA and Aston Business Solutions
Office: (+1) 734 997 2079
Mobile: (+1) 734 834 4596
steen.laursen@astonit.com
About TECTURA
TECTURA is a globally recognized, upper mid-market- and enterprise-focused systems integrator dedicated to helping customers achieve real business goals. In achieving Gold Certified status as a Microsoft partner, TECTURA is positioned to capitalize on its end-to-end, application-to-stack business solution delivery capabilities. TECTURA’s “Integrated Business Solutions” approach leverages deep Microsoft server and infrastructure (i.e., Classic) expertise, driving increased value for its existing Microsoft Business Solutions ERP and CRM customers, while creating a more competitive business solution for prospects. Equally as important, TECTURA is dedicated to delivering the industry's best customer service and support through world-class resources that demonstrate a solid commitment to each customer's success.
About Aston Business Solutions
Aston Business Solutions is a Microsoft Gold Certified leading global provider of value-adding integrated business solutions for financial management, supply chain management, analytics, and customer care. The company provides software (Microsoft Axapta, Great Plains, Navision, CRM), consulting, and IT implementation services worldwide to mid-market companies and large-enterprise divisions. Aston Business Solutions specializes in the distribution, manufacturing, and service-based industries, with solutions designed to meet the specific requirements of the life sciences, process manufacturing, healthcare, consumer packaged goods, industrial machinery, apparel, and advanced distribution segments. Aston Business Solutions’ 600 employees are based in 30 offices worldwide—including 14 in North America—and have implemented solutions in more than 50 countries. The company’s strong commitment to customer success has earned Aston Business Solutions the title of Microsoft Global Partner of the Year 2003 and Microsoft U.S. Partner of the Year 2004.
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