http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.17
R/$ = 11.58Change: 0.07
Au 1198.59 $/ozChange: 4.13
Pt 1200.50 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 10, 2006

Global acquisition to benefit SA subsidiary

Back
Engineering|Johannesburg|Africa|Automatic Data Processing|DaimlerChrysler|Established|Kerridge Computer|Kerridge Computer Company|Kerridge GM|Marine|System|Systems|Volkswagen|Africa|Europe|Canada|South Africa|United Kingdom|United States|USD|Automotive|Franchise Groups|Information Technology|Information-based Business Solutions|Information-basednBusiness Solutions|Manufacturing|Product|Products|Retail Motor Industry|Services|Software Houses|Software Program|Software Programs|Software Suppliers|Solutions|Systems|Transaction-processing|Arthur Weinbach|Paul Cronin|PaulnCronin|Asia Pacific|Middle East|Sub-Saharan Africa|UK-based Information Technology
Engineering||Africa|Marine|System|Systems||Africa||||Automotive|Manufacturing|Products|Services|Solutions|Systems||||
engineering|johannesburg|africa-company|automatic-data-processing|daimlerchrysler|established|kerridge-computer|kerridge-computer-company|kerridge-gm|marine|system|systems-company|volkswagen|africa|europe|canada|south-africa|united-kingdom|united-states|usd|automotive|franchise-groups|information-technology-industry-term|information-based-business-solutions|informationbasednbusiness-solutions|manufacturing|product|products|retail-motor-industry|services|software-houses|software-program|software-programs|software-suppliers|solutions|systems|transactionprocessing|arthur-weinbach|paul-cronin|paulncronin|asia-pacific|middle-east|subsaharan-africa|ukbased-information-technology
© Reuse this During the last few years, the automotive sector has been characterised by mergers and acquisitions, which have not only been confined to vehicle manu- facturers but also to component and software suppliers within the industry.

The most recent example of this trend was the global acquisition of UK-based information technology (IT)-focused Kerridge Computer Company by US-based Automatic Data Processing (ADP).

Established in 1976, Kerridge has progressed to be one of Europe’s largest software houses providing complete and fully-integrated IT solutions for a range of strategic vertical markets, most notably the automotive sector. To this extent, Kerridge has become globally renowned for its Auto- line Dealer Management System, which has, arguably, become the most complete fully-integrated system for the retail motor industry and associated trades. This software program is an industry leader within the dealer management-systems market, suiting all types of outlets from single-site specialist dealers to multi- franchise groups with a number of locations. It is tailored to suit individual requirements and has a wide range of interface and file-transfer facilities to link dealers to manu-facturers, importers and other third-party systems. In addition to its range of software programs, Kerridge is one of the leading companies in the world in terms of IT research and develop- ment, contributing a substantial percentage of its turnover a year to this activity.

Thus, it was these reasons, together with the company’s strong presence in Europe, South Africa, the Middle East and Asia Pacific, that prompted ADP to pursue the $300-million acquisition of Kerridge last year. ADP, with $8,5-billion in revenues and approximately 590 000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction-processing and information-based business solutions.

According to ADP chairperson Arthur Weinbach, the acquisition is an important part of ADP’s initiative for global expansion.

“Kerridge is a strategic fit with our dealer-services business which provides database management systems (DMS) and other integrated comprehensive solutions to auto- motive, truck, motorcycle, marine and recreational vehicle dealers throughout the US, Canada and Europe,” says Weinbach.

“The addition of Kerridge positions Dealer Services as the leading global DMS provider and partner of choice for the industry by expanding its geographic coverage from 14 countries on two continents to a total of 41 countries on four continents.” Ultimately, the acquisition of Kerridge by ADP has established a unique global capability to provide and support IT products for the retail automotive, vehicle importer and fleet markets.

However, the fundamental question remains: What does this global acquisition mean for Kerridge and its South Africa-based subsidiary? South African subsidiary Established in 1982 as a subsidiary responsible for deploying the company’s products in sub-Saharan Africa, the South African subsidiary of Kerridge Computer Company is primarily focused on marketing the Autoline program to the retail sector of the automotive industry.

The Johannesburg-based branch also concentrates on research and development into interfaces in manufacturing and third-party systems for functions such as parts ordering, warranty, customer- satisfaction-index submissions and customer-relationship management administration.

According to Kerridge sales manager Harm Stavast, the company has an estimated 40% market share of the franchised passenger-vehicle retail market, with its primary customer-base including DaimlerChrysler, Barloworld, Volkswagen and BMW. However, with regard to the acquisition of the holding company, Kerridge GM Paul Cronin contends that the future of the company will benefit enormously from being associated with a large organi- sation.

“Once the global acquisition is completed by midyear, we will be able to capitalise on the joint synergies and the market potential for our products,” Cronin tells Engineering News.

Although it will be a challenge for the company to adapt to the American culture of business, the future outlook of the company is overwhelmingly positive. “Fundamentally, the acquisition will enable us to invest more capital into growing the company’s already strong market share within South Africa and broaden our product offering to our local customer base,” concludes Cronin.
Edited by: Jade Davenport
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other ICT News
JSE-listed Blue Label on Friday said it had terminated talks with the undisclosed company that had made a nonbinding expression of interest to acquire all the issued shares in the telecommunications group in October. Blue Label, which retracted its cautionary, stated...
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
The converged CTR microwave router integrates legacy time-division multiplexing, Ethernet and Internet protocol/Multiprotocol Label Switching (IP/MPLS) network layers to enable cellular base stations to be multi-function hubs for delivery of new services, says...
Article contains comments
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks