Agilysys Sells Majority of its United Kingdom Business to Verteda Limited

  • Agilysys (PMS and other solutions)
  • 04.01.14
Agilysys, Inc. announced the sale of its United Kingdom business entity to U.K.-based Verteda Limited and enters into a multi-year EMEA market distribution agreement.

The former Agilysys Europe management team, headed by Adrian Burns, leads Verteda. In connection with the sale, Agilysys and Verteda have entered into a multi-year distribution agreement, whereby Verteda will distribute Agilysys InfoGenesis™ POS, a point-of-sale system; Agilysys Eatec®, an inventory and procurement system; and the Agilysys Workforce Management Solution™, in EMEA, with exclusivity in the U.K. and in the stadium and arena vertical internationally. Agilysys will continue to manage all property management system (PMS) accounts as well as key global accounts in the EMEA market.

The sale and distribution agreement with Verteda reflects Agilysys' strategic decision to address international markets primarily through a reseller strategy. This shift better positions Agilysys to increase the penetration of its software solutions in currently under-penetrated markets and optimize its returns on invested capital. Revenue generated from all international markets (inclusive of the EMEA market) in the nine-month period ended December 31, 2013, represented less than 10 percent of the company's overall revenue.

"The sale of our U.K.-based business and entry into a multi-year distribution agreement is consistent with the company's strategy to optimize its use of capital in pursuit of growth for our hospitality software solutions," said Jim Dennedy, president and chief executive officer of Agilysys. "We remain committed to our international markets, customers, resellers and employees. The reseller strategy permits us to pursue growth in international markets, which we believe can be optimally addressed through local businesses. We expect to maintain the same or higher levels of adjusted operating income from international sales while reducing corporate overhead and other direct costs."

Verteda will resell the Agilysys solutions either as a license or software-as-a-service (SaaS) offering and will retain responsibility for implementation and support. Verteda will retain all currently employed personnel of Agilysys Europe and acquire the Agilysys Europe corporate facility lease. Customers will not experience a change in product availability and services.

This press release and other publicly available documents, including the documents incorporated herein and therein by reference, contain, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management's current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause or contribute to such differences or that might otherwise impact the business include the risk factors set forth in Item 1A of the company's Annual Report for the fiscal year ended March 31, 2013. Copies are available from the SEC or the Agilysys website. We undertake no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements contained herein whether as a result of new information, future events or otherwise.




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