QAD, a global provider of enterprise software and services, has announced that it has acquired Duluth, Georgia-based FBO Systems. (FBOS), a leading provider of Enterprise Asset Management (EAM) products and professional services.
Approximately 70% of the all-cash purchase price consideration will be paid within 90 days of the November 3, 2006 close date, with the remaining 30%, subject to certain performance criteria, expected to be paid over a three-year period. The total net purchase price is expected to be approximately $4 million. This acquisition further expands QAD’s product offering and allows the QAD to provide a more complete, end-to-end enterprise solution to its manufacturing customers.
FBOS’ chief executive officer and co-Founder, Bo Hagler, has been named director of the enterprise asset management product unit at QAD.
For nearly 20 years, FBOS has helped single and multi-site manufacturing companies’ better handle their operations, including the repair, maintenance and engineering activities required to manage plant assets and meet regulatory compliance requirements. The FBOS’s domain expertise, implementation methodology and software functionality has allowed manufacturers to gain visibility and controls across operating units while lowering maintenance, purchasing and inventory costs.
FBOS’s leading software solution, MLS, which has been renamed QAD enterprise asset management (QAD EAM) - enables customers to actively manage maintenance workflow, capital projects, spare parts inventory and procurement, and regulatory compliance to help improve the bottom line.
QAD EAM provides the planning and process tools needed to address all planned, unplanned, predictive and reliability-centered maintenance requirements, enabling dramatic reduction in direct and indirect costs of inventory, labor, material and contract expenses. QAD EAM allows customers to optimize equipment performance and company-wide asset utilization, improve quality and product yield, and achieve more consistent on-time delivery.
Since 1994, QAD and FBOS have partnered to provide customers with a complete enterprise system to manage assets. As a result of the acquisition, customers of both QAD and FBOS will benefit from FBOS’ EAM expertise and QAD’s financial strength and global reach. Service and support for existing FBOS users will continue uninterrupted.
By joining forces with QAD, the combined customers will benefit from powerful solutions that help them enhance and leverage their asset-intensive manufacturing operations, while reducing their indirect MRO costs.
According to QAD, FBO Systems’ enterprise asset management expertise to QAD’s suite of manufacturing solutions has been added. For the past 12 years, both the companies have partnered to provide full-range solutions that meet each customer’s unique needs and as both continue to shape a perfect lean market for manufacturing, they are strongly committed to helping customers compete more effectively in the global marketplace.
This acquisition, combined with QAD’S recent purchase of Precision Software and QAD’S new product releases, strengthens its ability to deliver complete enterprise solutions designed to help global manufacturers lay the groundwork for future success and lasting bottom-line results.