The supplier of ERP systems for the manufacturing industry will pay $7.40 per share for a cash total of $14.8m, and the transaction is due to complete on May 26, 2005. As part of the agreement, the VC’s representative on the QAD board of directors will resign.
The ERP vendor has a good reputation and a strong position in its market although its earnings are variable. Earlier this month it lowered its earnings and revenue forecast both for the first quarter and for the whole of fiscal 2006 citing lower-than-expected license and services revenue in the first quarter.
