UCS snaps up strong position in FMCG software market
UCS Group Limited has moved swiftly and decisively to acquire the business of
CCS Software (Pty) Ltd for R10-million. As part of the acquisition, UCS has
formed a new company and has issued a 49 percent equity interest to the vendors
of the CCS business.
The deal between the JSE-listed group and the well-established FMCG retail
software development and solutions company has been confirmed by UCS managing
director John Bright.
"CCS, backed by a superb reputation for service excellence among customers in
the FMCG retail industry, represents a significant milestone in UCS's
clearly-stated strategic objective to be positioned as a leading supplier of
retail software solutions in selected local and international markets," says
Bright.
"The deal provides UCS with a strong entry point into a sector of the retail
industry that is not only closely aligned with the group's well-established
core business, but that dramatically expands the scope for future growth," he
says.
Founded in 1992, CCS has successfully regenerated its retail solutions through
several technological generations - from the supply of cash registers through
the character-based computer systems of the DOS era to the launch last year of
its latest Windows platform.
CCS managing director Wally Devenier describes the entry into the UCS group as
"unquestionably the most exciting development for CSS and its customers" in the
history of the company.
"We recently emerged from protracted and difficult negotiations with another
interested suitor in the IT industry. The UCS approach was refreshing. Not only
did UCS demonstrate a superb understanding of the retail industry, but they had
obviously done their homework and quickly identified the ideal fit and
tremendous synergies that exist between us and the group's strategic
objectives," says Devenier.
Bright says that CCS will easily and quickly adopt the unique UCS annuity-based
revenue model to offer significant customer benefits and growth opportunities
for the group well into the future.
The CCS acquisition brings a further 2 600 in-store systems into the UCS
installed base. Brand names in the CCS customer stable include a strong
presence in the franchise fast food and convenience store markets, including OK
Franchising Division (OK Foods, Sentra, Eight till Late and Hungry Lion),
Pleasure Foods (Wimpy, Juicy Lucy and Milky Lane), Rite Valu and Picardi Rebel.
CCS is currently involved in the roll-out of systems into 120 stores in the
Vodacom service provider franchise network.
With the incorporation of the CCS business and through the acquisition late
last year of Computerkit Systems (CKS), a dominant player in the software
solutions market in the retail pharmacy industry, the UCS installed base has
risen 5 900 in-store systems. This figure includes UCS's well-established
market leadership in the furniture and clothing retail sector.
Bright says the group, through UCS, CKS and CCS, has confirmed orders for a
further 1 600 stores that will bring to more than 7 500 the number of in-store
systems by the end of the first quarter next year.
"Store density at these levels enables UCS to offer all customers significant
cost savings and operational advantages through the use of our planned
value-added network (VAN)," he says.
Brights adds that retail software solutions from UCS, CKS and CCS will be
distributed into selected international markets through the same off-shore
partner channel.
Ends.
For further information contact:
Mark Frayne
UCS Group Limited
Tel: (011) 712-1300
Fax: (011) 339-3421
e-Mail: mdf@ucs.co.za
Visit www.ucs.co.za
Lindy Heunis
Account Executive
Southgro Investor Relations (Pty) Ltd
+ 27 11 880-0364 (t)
+ 27 11 788-3697 (f)
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