Fourth Shift Corporation acquired by AremisSoft

AremisSoft Corporation has announced the acquisition of Fourth Shift Corporation, as it positions itself for additional growth from next generation e-business systems.

AremisSoft Corporation has announced the completion of its first acquisition of a publicly traded company, Fourth Shift Corporation.

The acquisition represents another important step in AremisSoft's plan to consolidate key sectors of the enterprise application software market and positions the company for additional growth from next generation e-business systems.

Fourth Shift Corporation's new name is AremisSoft Manufacturing (US), Inc.

AremisSoft Corporation is a leading international supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries.

With the acquisition, the company will combine its existing manufacturing software operations with Fourth Shift and will support two separate product suites: Evolution and Fourth Shift.

AremisSoft's substantial software development operation is based in India, which benefits the company with significant labour savings, enabling the company to deliver highly competitive enterprise software at a substantially lower cost than its competitors.

Software development in India has an excellent reputation for first rate, high quality results.

AremisSoft Manufacturing will be run by chief operating officer Randy Tofteland, the former chief operating officer of Fourth Shift Corporation.

John Wolfenden, formerly managing director of Fourth Shift Europe, will be leaving the company to pursue personal interests and will be replaced by Mike Knight, previously the director of Professional Services at Fourth Shift Corporation in the USA.

Founder and former chairman and CEO of Fourth Shift, Mel Stuckey, together with former president, Jim Caldwell, will remain in consulting roles to facilitate the transition.

"Market consolidation is underway and we believe this combination demonstrates that AremisSoft is on the leading edge of this trend," said Tofteland.

"Joining forces with AremisSoft is the right strategy for Fourth Shift's employees and customers, and it has provided our shareholders with liquidity at a significant premium to our current market price." Mike Knight said, "For existing and prospective customers, AremisSoft will support and enhance the Fourth Shift product line, which will greatly benefit from AremisSoft's large-scale research and development teams.

"As part of AremisSoft, a company valued at over $800 million, we will have strong financial backing to ensure stability, commitment and long-term viability - each very important attributes to customers in a rapidly changing business climate," added Knight.

Financial analysts view the merger favourably.

A recent report by Lehman Brothers stated, "We believe the Fourth Shift business is highly complementary to both AremisSoft's existing operations and future plans for strategic expansion." The acquisition significantly adds to AremisSoft's customer base in North America, Europe, the Middle East, and Asia.

The acquisition also increases the company's market coverage and sales presence in the U.S.A.

and other key markets with approximately 460 employees and a complete worldwide business infrastructure, including over 70 sales people.

Overall, the acquisition of Fourth Shift is a major step forward for AremisSoft's strategy of leveraging its global talent pool of technology resources.

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