R/€ = 15.11Change: 0.15
R/$ = 13.45Change: 0.10
Au 1147.72 $/ozChange: 1.27
Pt 941.00 $/ozChange: 6.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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 Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Mar 10, 2006

Global acquisition to benefit SA subsidiary

© 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
Creamer Media Correspondent
© Reuse this Comment Guidelines (150 word limit)
Other ICT News
Updated 1 hour 55 minutes ago Allied Electronics (Altron) has dipped into the red in the six months ended August 31, as the JSE-listed firm continued to experience “adverse” challenges weighing on its Powertech Transformers, Altech Multimedia, Altech Autopage and Altech Node business units. The...
Facebook Inc said it would launch a satellite in partnership with France's Eutelsat Communications to bring Internet access to large parts of sub-Saharan Africa. The satellite, part of Facebook's platform to expand internet access mainly via mobile...
Internet protocol networking, ultrabroadband access and cloud technology specialist Alcatel-Lucent is preparing to deploy a 1 900 km fibre-optic submarine network offshore Angola. The company’s undersea cables subsidiary Alcatel-Lucent Submarine Networks was awarded...
Article contains comments
Latest News
Updated 15 minutes ago JSE-listed Clover has acquired a 51% stake in Frankie’s Olde Soft Drinks, resulting in the establishment of a new business, Clover Frankie’s. The new company would manufacture, sell, market and distribute a range of carbonated soft drinks, hot chocolate powder and...
Updated 19 minutes ago Hundreds of workers from various unions across the country have taken to the streets of Cape Town to march to Parliament for workers' rights. Members from Cosatu, NUM, Sactwu and other unions gathered in Kaizergracht to start the protest at around 10:50 on Wednesday.
Updated 47 minutes ago The South African International Renewable Energy Conference (Sairec) has wrapped up with a declaration to upscale and mainstream renewable energy globally. Delegates also pledged to make universal access to electricity a reality by 2030, with more than 1.3-billion...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96