http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.16Change: 0.02
R/$ = 11.02Change: 0.02
Au 1221.47 $/ozChange: -4.76
Pt 1345.00 $/ozChange: -4.00
 
 
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|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|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|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 Transport & Logistics News
The Coega FAW plant
Updated 4 hours ago FAW South Africa (FAW SA), a subsidiary of China’s FAW Group, has established a joint venture with the Pamodzi Group, focusing on truck sales in South Africa and other countries in sub-Equatorial Africa. The new company, Pamodzi-FAW, is 51% held by Pamodzi and 49%...
The new Mazda3
Updated 4 hours ago Japanese car maker Mazda is investing R150-million in the domestic market as the brand separates from Ford in South Africa. As from October 1, Mazda will no longer be distributed through Ford, but through Mazda Southern Africa (MSA).
Defence industrial cooperation between South Africa and Brazil was highlighted at the recent III Brazil Defence Industrial Base Show (III Mostra BID-Brasil, as it is known in Portuguese), held in Brazil’s capital city, Brasília. The Brazilian Ministry of Defence (MD)...
More
 
 
Latest News
Updated 6 minutes ago JSE-listed packaging firm Astrapak on Friday said it expected to report a loss a share of between 42c and 44c for the six months ended August 31, compared with a loss a share of 23.4c in the prior comparative period, mainly owing to the impact of industrial action....
Updated 17 minutes ago The National Energy Regulator of South Africa (Nersa) will release a consultation paper in February next year outlining the possible regulatory framework for “distributed power generation” in South Africa, including how “prosumers” could be empowered to feed surplus...
Updated 23 minutes ago Following the release of her groundbreaking research into the way in which local exporters assessed foreign markets, the World Trade Organisation (WTO) has formally honoured North-West University (NWU) Professor Wilma Viviers as one of seven global candidates for its...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
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