Science Systems has announced their intention to purchase the CODA business from Baan Company. CODA owns the rights to CODA-Financials, a corporate accounting solution, which according to Baan's figures, is used by over 2,000 medium and large enterprises worldwide. The CODA product range was recently complimented by the launch of the next-generation web-architected product, CODA E-Finance.
Under the terms of the offer, Science Systems are expected to pay approximately $50 million in cash for the assets and operations of CODA. The Baan Company predicts a gain of approximately $30 million on this transaction. Both the purchase price and reported gain are subject to finalization as part of the closing process. Completion of the acquisition is subject to customary closing conditions and is expected to be completed before the end of March 2000. Other terms of the agreement have not been disclosed.
Science Systems have been working with CODA since 1989. According to Baan, Science Systems is CODA's leading business partner, with involvement in over 200 CODA sites worldwide. Graham Steinsberg, currently head of the Science Systems division responsible for the CODA relationship, will take charge of the new organization which will see the existing CODA division within Science Systems merge with Baan Company. s CODA business.
Graham Steinsberg said after the announcement: "The synergy between the Science Systems and CODA businesses is amongst the most extensive I have ever experienced. My aim is to capitalize on this and offer our customers a comprehensive solution for all their accounting requirements by combining the worlds premier best-of-class accounting solution with Science Systems. enviable reputation for accounting, consulting and implementation expertise."
The recent launch of the Internet-enabled accounting solution, CODA E-Finance, heralds a new dynamic in CODA's product development strategy. It is anticipated that CODA E-Finance will enable customers to leverage the accounting function for strategic advantage by combining the traditional strengths of CODA-Financials with the very latest in industry standard Internet technology.
"Secure access across the web from anywhere in the world to the world. s leading best-of-class financials is a sure winner for our clients," continued Graham Steinsberg. "It has already allowed us to enter the fast growing ASP market (Application Service Providers) with recent sales in both Europe and the United States, proving that the product is ideally suited to companies looking to promote added value applications across the Internet. Our overall aim, supported by our investment strategy, is that within three years we should be the world. s leading supplier of . Best-of-Class E-Financials.. "
Klaas Wagenaar, a member of the Baan Company Management Board and the person responsible for the CODA negotiations, added that during 1999 Baan had embarked upon a program of investment into the CODA brand. However, Baan had more recently decided that a strategy of portfolio rationalization was in the better interests of its shareholders. If completed, the CODA sale would allow Baan Company to concentrate on leveraging its core strengths in integrated ERP, Supply Chain and Customer Relationship Management, while at the same time E-enabling and extending those products into the business to business e-Commerce space (particularly for complex manufacturing). Baan Company had therefore decided to seek a purchaser for the CODA business who would be committed to continue the work Baan Company had started and maintain and extend the quality of the solution and service offered to CODA customers worldwide.
"We considered the synergy between Science Systems and CODA, the strength of Science Systems. vision for the product set, and of Science Systems. supporting business plan, to be clearly in the best interests of shareholders, clients and staff," Klaas Wagenaar said. "Baan Company has enjoyed a good working relationship with Science Systems on the CODA side of the business, and we expect this to continue following the acquisition."