CIMdata PLM Industry Summary Online Archive
22 February 2005
Acquisitions
RAND Worldwide Announces Agreement To Acquire Sage CAD
Rand A Technology Corporation, operating as RAND Worldwide, has entered into a Letter of Intent to acquire 100% of the outstanding shares of Sage CAD Applications, Inc., Sage CAD Applications of New England, LLC and Sage CAD Metro, LLC (collectively "SageCAD").
The purchase price payable by RAND Worldwide for the Sage CAD shares will be a combination of cash, RAND common shares and additional cash and common shares based on Sage CAD's future financial performance after closing.
Sage CAD offers the Autodesk, Inc. ("Autodesk") suite of products and services, including training and consulting to customers in the Architectural Engineering Construction ("AEC"), Civil Engineering, Mechanical Design Analysis ("MDA"), and Manufacturing markets. Sage CAD has six offices located in the North Eastern United States with unaudited fiscal 2004 revenues of approximately US$10 million.
This transaction is subject to the customary closing conditions, including regulatory approval, due diligence satisfactory to RAND Worldwide and execution of a definitive purchase agreement.
"This acquisition is an important milestone for RAND Worldwide as it will be the first acquisition that the Company has completed since 2001 and signals a first step in our return to growth and profitability," said Frank Baldesarra, President and Chief Executive Officer of RAND Worldwide. "Over the past two years we have seen significant adoption of 3D design and collaboration software in the AEC industry similar to what we experienced in the mechanical design industry in the mid 90's, and Sage CAD is precisely the kind of well respected and established company that will help us fulfill our goal of leading the AEC industry."
"Sage CAD is an extremely focused organization, dedicated to helping engineers and architects achieve greater success," said Len Kalmer, President of Sage CAD. "With the merger of Sage CAD and RAND Worldwide, we will now be able to bring the resources of a well respected global organization to many of our national clients."
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