CIMdata PLM Industry Summary Online Archive
6 March 2006
Acquisitions
RAND Worldwide® to Acquire Certain Assets of Taylor Technologies, Inc.
RAND Worldwide® ("RAND" or the "Company") has entered into a non-binding letter of intent to acquire certain assets of Taylor Technologies, Inc. ("TTI") based in Kingsford, Michigan. The purchase price, payable by RAND for the assets of TTI, will be made in cash and will be comprised of an upfront lump-sum payment plus an "earn-out" portion, also payable in cash, should the business associated with the purchased assets achieve certain future financial targets. The transaction is expected to close on or before April 1, 2006.
TTI is a technology integrator, specializing in sales of Autodesk Inc. ("Autodesk") software, engineering process consulting services and training. TTI generates approximately USD$8.0 million per year in revenue, and sells Autodesk software and related services primarily to the Architectural, Civil and Geospatial markets. TTI has offices in eight cities throughout the Midwestern U.S., including Chicago, Minneapolis and Milwaukee.
"This acquisition is an excellent opportunity for RAND to expand the geographical reach of our Autodesk services throughout the Midwest, and is consistent with our strategy to further enhance our position within the Architectural and Civil markets," said Frank Baldesarra, President and CEO of RAND Worldwide. "The adoption of 3D design and collaboration applications continues to show signs of promising growth, and Autodesk is the leading provider of software to this market.
In addition to fortifying our position as the largest third-party vendor of Autodesk software and related services worldwide, we believe this acquisition will be accretive to earnings in 2006. For the remainder of 2006, we will continue to pursue a strategy of building our business both organically and through additional acquisitions."
"TTI has more than 18 years of engineering and architectural technology experience. During that time, we have built a reputation for providing superior customer service and forging long-term customer relationships," said Ken Taylor, President and CEO of TTI. "RAND's global footprint and broad suite of proprietary services and software will enhance our ability to increase the productivity of our customers and expand our relationships with them."
This transaction is subject to the customary closing conditions including regulatory approval, due diligence satisfactory to RAND and execution of a definitive purchase agreement.
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