http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.01
R/$ = 10.50Change: -0.01
Au 1294.90 $/ozChange: 0.00
Pt 1407.50 $/ozChange: -5.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office 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
Johannesburg|Automatic Data Processing|DaimlerChrysler|Established|Kerridge Computer|Kerridge Computer Company|Kerridge GM|Volkswagen|Europe|Canada|South Africa|United Kingdom|United States|USD|Franchise Groups|Information Technology|Information-based Business Solutions|Information-basednBusiness Solutions|Retail Motor Industry|Software Houses|Software Program|Software Programs|Software Suppliers|Transaction-processing|Arthur Weinbach|Paul Cronin|PaulnCronin|Asia Pacific|Middle East|Sub-Saharan Africa|UK-based Information Technology
johannesburg|automatic-data-processing|daimlerchrysler|established|kerridge-computer|kerridge-computer-company|kerridge-gm|volkswagen|europe|canada|south-africa|united-kingdom|united-states|usd|franchise-groups|information-technology-industry-term|information-based-business-solutions|informationbasednbusiness-solutions|retail-motor-industry|software-houses|software-program|software-programs|software-suppliers|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
 
 
 
 
 
 
 
 
Other Telecoms News
Article contains comments
The City of Cape Town has entered into eight third-party service provider agreements licensing the take up of the spare infrastructure capacity generated through the city’s broadband network. Lease-agreement negotiations were progressing with another 20 third-party...
Charl Coetzee
Namibia is set to get a skills boost as a new information and communications technology (ICT) centre starts training network engineer recruits to maintain the Southern African country’s own infrastructure. Telecom Namibia, in conjunction with XON Systems and...
JSE-listed Business Connexion (BCX) on Tuesday said it planned to reach a sustainable return on total equity of 17% as it targeted an African expansion and continued merger and acquisition activity, while advising shareholders that its board of directors had...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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