Back

Agilysys Signs Definitive Agreement to Acquire InfoGenesis
3 June 2007

BOCA RATON, Fla., Agilysys, Inc. (NASDAQ:AGYS) , a leading provider of innovative IT solutions and hospitality software solutions, today announced it has entered a definitive agreement to acquire InfoGenesis, a privately held, independent software vendor (ISV) and solution provider to the hospitality market. Based in Santa Barbara, Calif. and at approximately $42 million in annual revenues, InfoGenesis offers enterprise-class point-of-sale (POS) solutions that provide end users a highly intuitive, secure and easy way to process customer transactions across multiple departments or locations, including comprehensive corporate and store reporting.

InfoGenesis has significant presence in casinos, hotels and resorts, cruise lines, stadiums and foodservice. The acquisition will provide Agilysys a complementary offering that will extend its reach into new segments of the hospitality market, broaden its customer base and increase its software application offerings.

"With some of the world's leading properties as customers, the acquisition of InfoGenesis will further strengthen Agilysys' market position in the hospitality industry," said Arthur Rhein, chairman, president and chief executive officer of Agilysys. "The acquisition will also provide us a competitive advantage with enhanced levels of integration between property management, POS, and inventory and procurement systems, as well as our golf course and spa management applications. Over the years, we have worked closely with InfoGenesis at a number of mutual customer locations and together will market a powerful single-source solution that enables properties to increase guest loyalty and overall profitability."

Over the trailing 12 months ended March 31, 2007, InfoGenesis generated revenues of approximately $42 million and earnings before interest, taxes, depreciation and amortization ("EBITDA") of approximately $7 million.

The purchase price of $90 million will be funded by cash on hand. The transaction is expected to close mid-to-late June, subject to, among other things, the satisfaction of customary closing conditions.

In addition to its California headquarters, InfoGenesis has a customer operations and support center in Las Vegas. The company has approximately 170 employees.

Rhein added that today's announcement continues the company's recent aggressive acquisition activity. Over the last six months, this is the second acquisition Agilysys has made in the hospitality IT market and the fourth overall. Recently announced transactions include:

- Innovativ Systems Design, an integrator and value-added reseller of servers, enterprise storage management products and professional services, and the largest U.S. commercial reseller of Sun Microsystems servers and storage products;

- Stack Computer, a premier technology integrator with a strong focus in high availability storage infrastructure solutions; and,

- Visual One Systems, a leading developer and marketer of Microsoft(R) Windows(R)-based software for the hospitality industry including applications in property management, condominium, golf course, spa, point-of-sale, and sales and catering management.

Rhein said, "I continue to be impressed with our organization's ability to execute our strategic plan, including the rapid identification, negotiation and integration of targeted acquisitions."

The acquisitions are consistent with previously announced plans to use proceeds from the sale of Agilysys' former distribution business to fund growth organically and through acquisition. Including the acquisitions listed above, Agilysys has pro forma revenues in excess of $850 million.

About InfoGenesis | InfoGenesis is an independent software vendor (ISV) and solution provider to the hospitality market. The company offers enterprise-class point-of-sale (POS) solutions to the hospitality marketplace that provide end users a highly intuitive, secure and easy way to process customer transactions. InfoGenesis is defining the future of hospitality with Guest Experience Management applications and services and helps its customers understand their guests' preferences, tailor service to their unique needs, and maximize revenue per customer. The company's solutions include point-of-sale, self-service, reservations, dining management and analytics for leading hotels, resorts, casinos, cruise lines, stadiums, and restaurants and managed foodservices.

About Agilysys, Inc. | Agilysys is a leading provider of IT solutions to corporate and public- sector customers, with special expertise in select vertical markets, including retail and hospitality. The company uses technology-including hardware, software and services-to help customers resolve their most complicated IT needs. The company possesses expertise in enterprise architecture and high availability, infrastructure optimization, storage and resource management, and business continuity; and provides industry-specific software, services and expertise to the retail and hospitality markets. Headquartered in Boca Raton, Fla., Agilysys operates extensively throughout North America, with additional sales offices in the United Kingdom and China. For more information, visit /.

Forward-Looking Language | Portions of this release, particularly the statements made by management and those that are not historical facts, are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current assumptions and expectations, and are subject to risks and uncertainties, many of which are beyond the control of Agilysys. Many factors could cause Agilysys' actual results to differ materially from those anticipated by the forward-looking statements. These factors include those referenced in the Annual Report on Form 10-K or as may be described from time to time in Agilysys' subsequent SEC filings.

Potential factors that could cause actual results to differ materially from those expressed or implied by such statements include, but are not limited to, those relating to Agilysys' long-term financial goals, anticipated revenue gains, sales volume, margin improvements, cost savings, capital expenditures, depreciation and amortization, and new product introductions.

Other associated risks include geographic factors, political and economic risks, the actions of Agilysys' competitors, changes in economic or industry conditions or in the markets served by Agilysys, and the ability to appropriately integrate and derive performance from acquisitions, strategic alliances, and joint ventures.

In addition, this release contains time-sensitive information and reflects management's best analysis only as of the date of this release. Agilysys does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Information on the potential factors that could affect Agilysys' actual results of operations is included in its filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended March 31, 2006. Interested persons can obtain it free at the Securities and Exchange Commission's website, .

Contact
Julie Young
Phone: +1-440-720-8602
Email: julie.young@agilysys.com

Organization
Agilysys, Inc.
https://www.agilysys.com/
3655 Brookside Pkwy, Ste 300
USA - Alpharetta, GA 30022
Tollfree: 18002418768
Phone: 1 (877) 369-6208
Email: sales@agilysys.com

Follow us on:
TwitterFacebookLinkedInYoutube

Recent News
Rudding Park Selects Agilysys Hospitality Software Solutions to Modernise Guest Journeys and Streamline Operations Across Its Hotel Ecosystem
Agilysys Mobile Caddie App Drives Over 20 Hours of Weekly Scheduling Efficiency for Streamsong Resort’s Golf Operations
Agilysys InfoGenesis® (POS) Platform Approved by IHG Hotels & Resorts Across Its Portfolio

Back

Click here for All Industry News


Powered by Hsyndicate

Privacy Statement & Disclaimer | Submit News