Technology
Purchase makes Alpharetta company a giant
Atlanta Business Chronicle - by Justin Rubner
A little-known Alpharetta software company is growing into a major force in its industry.
Infor Global Solutions has bought Chicago-based SSA Global Technologies Inc. (Nasdaq: SSAG) for $1.6 billion -- a move that will make the combined company one of the biggest enterprise software makers in the country.
The combined sales of the companies is estimated at $1.6 billion (no relation to the acquisition price), while the employee base will far surpass 3,000.
"It launches us as a credible alternative to SAP or Oracle," said CEO Jim Schaper.
Infor, which is funded by Golden Gate Capital, in November acquired most of the assets of Geac Computer Corp. (Nasdaq: GEAC) for $1 billion. In April 2005, it acquired Atlanta software-maker MAPICS Inc. for $347 million.
Schaper said the company will continue to grow -- and do so in the Atlanta area, where it employs 450 people.
"Whether by new additions or people moving or both, the number of people Infor will employ in Atlanta will continue to go up," Schaper said.
Infor sells software primarily to the manufacturing and distribution industries. Top customers include Carrier Corp., L3 Communications Inc. and Coca-Cola Enterprises Inc.
Energy investment. Atlanta-based Utility Associates has raised $1.5 million in equity from Braemar Energy Ventures.
The company, founded in 2002, sells tracking devices and online services to utilities and government agencies. Those groups, including Georgia Power Co. and Atlanta Gas Light, use the service to route vehicles and track personnel in real time.
The service, said President Ted Davis, has been valuable both for safety and logistics efficiency. One employee with an emergency management consultancy in Louisiana, he said, recently went into a diabetic coma while in the field. The company he worked for, James Lee Witt Associates LLC, was able to find him through Utility Associates' global positioning and radio tracking devices.
Davis said many utilities are updating such technologies, causing a "pent-up demand" in business. He expects the company to post $30 million in sales in 2007, up from only $3 million this year. St. Bernard Parish is testing Utility Associates' systems, too, as southern Louisiana officials are updating command and control systems after Hurricane Katrina.
In addition to mega revenue growth expectations, Davis also plans on doubling the small company's staff to 20 employees by year end.
New York-based Braemer Energy Ventures is also an investor in Tucker-based CoalTek, which is developing a more environmentally friendly pre-treatment process for commercial coal.
Changes at H.I.G.
Paul Pishal of H.I.G. Ventures, Atlanta's largest venture capital fund, will no longer be making investments with the firm.
Pishal, former managing director of the firm, says he has decided to serve as a technology partner, providing technical evaluations for potential investments and serving more operational roles with existing investments. Pishal also says he chose to give up his board seats of several tech companies, including Atlanta's Vocalocity Inc., EGT Inc. and Lancope Inc.
Prior to his work at H.I.G., Pishal led broadband access development at Cisco Systems Inc. (Nasdaq: CSCO). He also has held technology roles at Scientific Atlanta Inc.
New ownership
New Horizons Worldwide Inc., a provider of computer training, has sold its Memphis, Nashville and Atlanta offices back to existing franchisees for $1 million. The company had bought several locations in 2005 but decided to refranchise them out, said spokesman Mark Tucker. The franchisee is GBWH LLC.
California-based New Horizons, founded in 1982, does 75 percent of its business by training corporations.
Correction
A column in the May 5 edition, "Startup Qcept gets $3 million to inspect chips," incorrectly reported the amount of venture capital raised. The actual amount is $6 million. In addition, the column listed a person who was not a founder of Qcept Technologies Inc. Only Steven Danyluk was a founder.
If you have news for Technology, contact Justin Rubner at (404) 249-1078; fax, (404) 249-1058; or at jrubner@bizjournals.com.
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