Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Agilysys to Acquire Innovativ

BOCA RATON, Fla. -- Agilysys, Inc.
(NASDAQ:AGYS), a leading provider of IT solutions, today announced it has entered a definitive agreement to acquire Innovativ Systems Design, Inc., a privately held company based in Edison, N.J. At approximately $260 million in revenues, Innovativ is the largest U.S. commercial reseller of Sun Microsystems servers and storage products.

Innovativ is an integrator and value-added reseller of servers, enterprise storage management products and professional services. The company designs, implements and deploys complex, large-scale IT infrastructure solutions, acting as a single hardware, software and services source for its enterprise customers. Employing an experienced team of senior technology and business experts, Innovativ also offers a broad portfolio of proprietary professional services to support its customer solutions. With the company's Sun relationship and strong presence in financial services and telecommunications, the acquisition will further diversify Agilysys'
supplier mix, establish new markets and broaden the company's customer base.

Over the trailing 12 months ended March 31, 2007, Innovativ generated revenues of approximately $256 million and earnings before interest, taxes, depreciation and amortization ("EBITDA") in excess of $20 million.

Innovativ's achievements have earned it a ranking of 132 in the VARBusiness 500 in 2006 and, as recipient of the 2005 VARBusiness Top Revenue Generator Award, the company is recognized as one of North America's top solution providers and one of only 17 honored by the magazine.

The purchase price of $100 million will be funded by cash on hand. In addition, Agilysys will pay an earn-out of two dollars for every dollar of EBITDA greater than $50 million in cumulative EBITDA over the first two years after closing. The earn-out will be limited to a maximum payout of $90 million.

  • 1