CIMdata PLM Industry Summary Online Archive
14 March 2005
Acquisitions
Avatech Solutions Announces Plans to Acquire Software Solutions Provider Comtrex Corporation
Avatech Solutions, Inc. announced that it has signed a letter of intent to acquire Charlotte, N.C.-based Comtrex Corporation. Terms of the planned acquisition were not disclosed.
Owings Mills, Md.-based Avatech ( http://www.avatechsolutions.com ) is the recognized leader in design and engineering systems integration for the manufacturing, building design and engineering markets. Comtrex Corporation was founded in 1983 and provides Computer-Aided Design (CAD) software solutions and related services throughout North and South Carolina. Comtrex has offices in Charlotte, N.C., Greensboro, N.C., and Raleigh-Durham, N.C., as well as a substantial client list that includes Fortune 500 companies.
The Comtrex acquisition would provide Avatech with its first-ever presence in the North Carolina area and effectively extend the Company's location network to cover most of the East Coast. Avatech currently has 16 office locations nationwide in 13 states and, in February, reported a return to profitability for the second quarter of fiscal 2005 on revenue of $8.2 million. The Company said that the Comtrex acquisition, if completed, would be accretive to earnings for its fiscal year ending June 30, 2005. The acquisition is expected to be completed within the next 30 days. Comtrex was recognized last week at the Autodesk One Team Conference in Las Vegas, NV as an Autodesk Platinum Club award winner for Top Manufacturing Solutions Division growth for the Southeast Region.
"As we've indicated, mergers and acquisitions are a key facet of our growth strategy and a complement to our organic growth opportunities. Comtrex is an outstanding example of the right acquisition at the right time for us, as it provides Avatech with an immediate and broad-based presence in one of the most dynamic regions for business in the country," said Scotty Walsh, CEO at Avatech Solutions.
"Over and above their location, Comtrex Corporation has always been a first-class operation with a strong commitment to innovation and outstanding service. We're excited about the prospect of integrating their customer relationships, sales and technical expertise with our larger suite of services."
Comtrex has followed Avatech's lead in evolving to focus on providing top-level programming and engineering solutions, as well as comprehensive service and training for Fortune 500 and middle-market clients nationwide. Comtrex has particularly strong expertise in manufacturing, data management and PLM - all of which are key areas of growth for Avatech.
"Avatech is one of the most respected names in our industry and has an established reputation as a customer-focused, service-oriented organization. We are very pleased to have this opportunity to make their expertise, resources and national reach available to our regional clients," said Stan Hilburn, President of Comtrex.
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