Acquisition of TradePoint Systems
22 December 2003
Kewill Systems plc ("Kewill" or the "Company") today announced it has entered into a conditional agreement to acquire the TradePoint Systems group (“TradePoint”), one of the leading providers of Trade Facilitation Software and services to International Freight Forwarders, Customs House Brokers, Exporters and Importers. TradePoint has over 650 customers in the USA and Europe, representing an estimated 25% share of the US Customs clearance market. 25% of these customers have been with TradePoint for over 10 years. TradePoint also enjoys a dominant position in the export documentation market in the UK. The business has a 30 year history of enabling customers to simplify the process of moving goods over international borders.
Headquartered in Nashua (New Hampshire) TradePoint currently employs 100 people: 83 in the US, 15 in the UK and 2 in Holland. TradePoint is a private company and is owned and managed by its current president and chief executive officer Chris Crane, who has been involved with TradePoint and its forerunners for some 26 years.
TradePoint’s management information indicates that for the year ended 31st December 2002 the net assets of the group were $900,000 and profits attributable to those assets of $1.1M (restated for owner compensation elements). The final net asset position and consideration paid will be based on the 2003 audited numbers. Completion of the acquisition is conditional upon various procedural matters and, subject to satisfaction of those conditions, completion is expected to occur at the beginning of January 2004.
Consideration for the acquisition
The initial consideration for the acquisition amounts to $11.8 million in cash and $500,000 in Kewill Ordinary Shares payable on completion. The cash part of this consideration is to equate to 1x TradePoint’s 2003 revenue and is therefore subject to a potential adjustment following completion of the audit of the accounts of TradePoint for the period ended 31 December 2003.
View the follow-up release announcing completion of the acquisition.