Softing acquires Online Development Inc. in the USA
Haar/ Knoxville, May 22nd, 2014
Today Softing North America Holding Inc., a 100% subsidiary of Softing AG, signed a stock purchase agreement with the owners of Online Development Inc. (OLDI) in Knoxville, Tennessee (USA) concerning the acquisition of all of their shares by Softing. The transfer of the shares will be executed on the completion of remaining conditions which are expected to materialize by May 31st, 2014.The purchase price ranges between $20 million and $30 million, depending of the future performance of OLDI.
In 2014 OLDI expects to exceed $20 million in revenue. At this point no estimate about the EBIT-contribution of OLDI to Softing can be made due to structural fiscal changes, acquisition and integration related expenses and the remaining need of a purchase price allocation.
For over 20 years OLDI designs and manufactures factory automation products related to control and communication tasks. OLDI’s business almost perfectly complements Softing’s product portfolio in the core business of Softing’s Industrial Automation segment. OLDI is a Rockwell Automation Global Encompass Partner, a member of the Control Systems Integrators Association and ODVA and participates in partner programs from IBM, Microsoft and Oracle. By acquiring OLDI, Softing profits from the dynamic growth in the US industrial automation market. The acquisition leads to an almost equal representation of Softing in two of the three biggest automation markets worldwide, reducing Softing’s risk exposure to the European market.