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Summer 2000
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General Automation, Inc (GA) has announced that it has signed a letter of intent for Pick Systems, also located in Irvine, California, to purchase GA’s database business for $6.5 million plus other considerations. The terms of the purchase include all assets associated with the database business. The agreement, which has been approved by GA’s board of directors, is expected to be finalized by June 15 and is subject to the completion of a due-diligence process.
The move is a strategic step by GA in its ePathTM strategy to provide its customers with a migration path to the Internet. GA eXpressTM, a business unit of GA, will now concentrate all resources toward providing world-class solutions that enable MultiValue customers to quickly and cost-effectively leverage the Internet to participate in eBusiness.
“We’ve seen business in the new economy and it is solidly rooted in the Internet,” said Jane M Christie, president and CEO, GA.
“The sale of our database business allows us to focus our efforts on our already highly-acclaimed eBusiness solutions, while providing us the freedom and independence to serve the nearly 250,000 MultiValue customer sites as an independent vendor with eBusiness solutions that are not reliant on any single MultiValue platform.”
According to Richard Nance, Chief Financial Officer with GA, “Today’s announcement is a very positive one for our company. By focusing our competencies on one area - eBusiness - we can streamline many operations for overall improved company stability and growth. In addition, we believe this transaction will allow us to reduce debt and potentially improve some key balance sheet ratios, as well as eliminate some costly licensing fees.”
Christie added, “We believe our new direction will enable us to better serve the MultiValue market. While there are several companies that provide databases for the MultiValue market, GA eXpress is the only one with comprehensive, non-proprietary eBusiness solutions. The market needs our expertise in this area.”
“When we began discussing the sale of the database business, we strongly considered how Pick Systems would service our customers,” continued Christie.
“I feel confident that Pick Systems will continue to provide the responsive, comprehensive service and support that our customers have received from us. They are 100 percent committed to serving and growing the MultiValue market.”
Gil Figueroa, president and CEO of Pick Systems said, “For many years, GA has been one of the premier companies in the MultiValue technology market. We are committed and eagerly look forward to providing GA’s customers with a very high level of service to ensure their complete satisfaction.”
In April, GA announced plans to create a new business entity to provide eBusiness data integration solutions for Internet-based supply chain management processes. The business entity will develop solutions that will enable companies to leverage their existing data and quickly develop an online presence.
Editor’s Note: At the time we posted the story, this transaction was still ongoing.Last Updated: 27 Sep 2000