Manhattan Associates has signed a definitive agreement to acquire Evant, a provider of supply chain planning and replenishment solutions. Privately held and based in San Francisco and Atlanta, Evant provides solutions to more than 60 companies in the retail, manufacturing and wholesale distribution industries, including many that are joint Manhattan Associates clients. Under the terms of the agreement, Manhattan Associates will pay approximately $50 million in cash for the company.
The Evant acquisition extends Manhattan Associates’ solution footprint beyond its current supply chain execution leadership position. This combination of planning, optimization and execution solutions would make Manhattan Associates the only company in the world that provides the complete footprint for supply chain management.
Moreover, this acquisition provides the existing Evant customer base the advantage of Manhattan Associates’ suite of Integrated Logistics Solutions(TM), which includes Distributed Order Management, Warehouse Management, Transportation Management, Trading Partner Management, Reverse Logistics Management and RFID in a Box(R).
“We believe the extension into supply chain planning and replenishment is a natural evolution for Manhattan Associates. We know from experience with our joint customers, that companies with the best supply chains in the world are looking for a single business partner to provide solutions and expertise for integrating their supply and demand networks,” said Pete Sinisgalli, president and CEO of Manhattan Associates. “The combination of our solutions represents an important step in our plan to continue to deliver superior value to our customers and shareholders.”
“Merging our company with Manhattan Associates will bring tremendous value to our customers and the market as a whole,” said Robert R. Lewis, chief executive officer of Evant. “Our track record in supply chain planning and replenishment, combined with our new standalone forecasting solution, will extend Manhattan Associates’ leadership from supply chain execution, positioning them as the supply chain company.”
Staples, Inc., executive vice president of Supply Chain, Paul Gaffney, said, “Supply chain performance is critical in supporting Staples’ commitment to making it easy to buy office products. As a customer of Manhattan Associates and Evant for several years, we see tremendous synergy and value in Manhattan Associates providing a total supply chain footprint for our operation.”
The acquisition is subject to customary closing conditions and is expected to close on or before September 30, 2005. The transaction is expected to be about $0.02 dilutive to fourth quarter adjusted earnings per share (EPS) for Manhattan Associates this year. For 2006, it is expected the acquisition will add about $0.03 cents to adjusted EPS. At this time, it is not possible to estimate the impact of the transaction under Generally Accepted Accounting Principles (GAAP) due to the need to complete an independent appraisal of the net assets being acquired and the related purchase accounting adjustments. The transaction has been approved by both the Manhattan Associates board of directors and the Evant board of directors. ![[end]](/resources/bullet/archive-4.gif)
