Tecsys Continues European Expansion with Acquisition of PCSYS A/S
MONTREAL, Feb. 01, 2019 (GLOBE NEWSWIRE) — Tecsys Inc. (TSX: TCS), a Montreal-based supply chain management software company, today announced its acquisition of PCSYS A/S, a Danish technology company. Founded in 1990, PCSYS is a leader in Europe when it comes to software and hardware solutions for warehouse management, transportation management, and labelling systems. The organization supports more than 1,000 companies on their journey to achieve supply chain excellence by using robust technology to manage ever-changing requirements and introduce new productivity and cost-saving strategies.
“PCSYS has found a like-minded customer-first spirit with Tecsys, and we are pleased to welcome their employees to our growing team,” said Peter Brereton, president and CEO of Tecsys. “The PCSYS solutions are highly valued by many across the European market and beyond, and we’re pleased to be able to continue their tradition of collaborative software development and customer service as a unified force.”
Tecsys has been building global momentum in new markets and industries in recent years, notably with the November 2018 acquisition of OrderDynamics. In addition to acquiring this leader in retail distributed order management software, Tecsys also launched a new brand identity and purpose in January 2019.
“It’s a particularly energizing time to be at Tecsys,” Brereton continued. “Our focus on equipping supply chain greatness is a concept that has power for companies in a range of industries throughout the world. The addition of PCSYS, with its knowledgeable employees and proven solutions, further supports and strengths our position, particularly in the European market.”
“On behalf of the PCSYS team, I’m truly excited about the new opportunities our customers and employees will have as part of the Tecsys family,” said Klaus Juhl, CEO and partner of PCSYS. “As a single organization, both the Tecsys and the PCSYS solutions will be able to reach new markets, and together we will be a stronger supply chain partner to new and existing customers worldwide.”
Tecsys purchased 100% of the shares of PCSYS for an aggregate purchase price of DKK (Danish Krone) 67.0 million (approximately C$13.7 million), subject to adjustments. Tecsys funded the purchase price with a bank term loan of C$12.0 million and existing cash. PCSYS had revenue and operating profit for its fiscal year ended September 30, 2018 of DKK 75.3 million (approximately C$15.4 million) and DKK 9.0 million (approximately C$1.8 million), respectively*. Tecsys expects the acquisition to be immediately accretive to operating profit, based on PCSYS’ historical financial results.
*Financial statements prepared in accordance with Danish Financial Statements Act.
Tecsys is a global provider of transformative supply chain solutions that equip growing organizations with industry-leading services and tools to achieve operational greatness. Tecsys’ solutions are designed to create clarity out of the complex supply chain challenges that organizations with increases in scale, customer expectations and inventory. Built on an enterprise platform, Tecsys solutions include warehouse management, distribution and transportation management, supply management at point-of-use, retail order management, as well as complete financial management and analytics solutions. Through the co-creation of a more responsive supply chain, Tecsys ensures that growth-minded organizations have the chance to thrive and reach their aspirations.
Over 600 mid-size and Fortune 1000 customers trust their supply chains to Tecsys in the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries. Tecsys’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
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Forward Looking Statements
The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management’s beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.’s business can be found in the MD&A section of the Company’s annual report and annual information form for the fiscal year ended April 30th, 2018. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).
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