Enterprise resource planning software maker Epicor Software Corp., of Irvine, Calif., announced today that it has completed its acquisition of ROI Systems Inc. for $20.7 million in an all-cash transaction.
Privately held ROI, of Minneapolis, makes manufacturing software for the mid-market, which is also Epicors customer base.
The acquisition extends Epicors current manufacturing customer base of 6,500 with about 350 ROI customers. Epicor has 15,000 enterprise customers worldwide.
In line with the acquisition, Epicor said it completed a workforce reduction that will cut about 20 percent of the combined manufacturing group.
Epicor announced previously that it would undertake stringent mergers and acquisition criteria to meet its growth strategy of both organic and acquired growth.
"The acquisition of ROI enables us to further leverage our domain expertise in manufacturing and our industry-endorsed road map to deliver next generation Web services to an expanding base of mid-market customer," said George Klaus, chairman, CEO and president of Epicor, in a statement.
ROI offers software for a number of industry verticals, including consumer packaged goods, medical devices and equipment, and transportation products.
Epicor has expertise in discrete, make-to-order manufacturing, distribution and hospitality and service oriented verticals.
Combined with ROI, Epicor plans to further develop Web service technologies and collaborative applications. In the first half of 2004, Epicor expects to release its .Net manufacturing software that will allow both its customers and ROIs to leverage Web services, officials said.