Fourth Shift announces definitive agreement to be acquired by AremisSoft Corporation
"Market consolidation is underway and we believe this combination puts Fourth Shift and AremisSoft on the leading edge of this trend", said M. M. Stuckey, Chairman and CEO of Fourth Shift. "Joining forces with AremisSoft is the right strategy for Fourth Shift's employees and customers, and it provides our shareholders liquidity at a significant premium to our current market price.
"AremisSoft plans to combine its UK based manufacturing software operations with Fourth Shift and expand its resource commitment to supporting global ERP systems and new e-business applications. This will make AremisSoft a dominant player in the global, mid-market Manufacturing space," observed Stuckey.
Randy Tofteland, Fourth Shift's current Chief Operating Officer, will head the new combined manufacturing organization.
Under terms of the agreement, AremisSoft will acquire all of the outstanding common stock of Fourth Shift for $3.70 per share for a consideration of approximately $40.5 million. The Board of Directors of both companies unanimously approved the transaction. Closing of the transaction is subject to approval by Fourth Shift shareholders at a meeting to be scheduled in mid May 2001.
About Fourth Shift Corporation
Fourth Shift is a Minneapolis-based global application software company that provides Enterprise Resource Planning software, e-business solutions, consulting, and technology services. Fourth Shift has licensed software to about 3,700 customer sites in 60 countries and is translated into more than a dozen languages. Licensees include some of the fastest growing manufacturers and global enterprises from the Global 2500. Recently Fourth Shift introduced version 7.10 of its ERP software which offers a complete web browser interface to all applications as well as a comprehensive e-business suite, My Fourth Shift. The Company has approximately 460 employees and reported revenue for the twelve months ended Dec. 31, 2000 of $61.2 million.
About AremisSoft Corporation
AremisSoft develops, markets, implements and supports enterprise-wide applications software targeted at mid-sized organizations in the manufacturing, healthcare, hospitality and construction industries. The Company's software products help streamline and enhance an organization's ability to manage and execute mission-critical functions such as accounting, purchasing, manufacturing, customer service and sales and marketing. AremisSoft reported total revenue of $123.6 million for the twelve months ended Dec. 31, 2000 and pro forma net income of $29.0 million for the same period. AremisSoft has approximately 835 employees, with sales in over 20 countries and a customer base in excess of 7,200. The Company also operates a software development and support facility in India, with over 325 employees, which provides significant organizational efficiencies and cost advantages in software development and support.
Source: Fourth Shift Corporation