Supply chain and manufacturing systems operation Kewill Systems Plc is on the acquisition trail again, this time paying $21m for US-based Exeter Software Ltd. The Billerica, Massachusetts-based warehouse management software supplier will become a wholly owned subsidiary of Walton-on-Thames, UK-based Kewill, which has just reported pre-tax interim profits up 10.4% at 3.6m pounds (CI No 3,301). Kewill anticipates its new purchase will enable it to offer warehouse management capabilities at the entry level of the global supply chain market. Currently, Kewill’s warehouse management interests account for 24% of the business, behind manufacturing which brings in 42% of Kewill’s revenues. Electronic commerce now accounts for 18% of the business, a figure that finance director Richard Broad envisages will grow as the internet gains greater momentum. The acquisition of Exeter boosts Kewill’s operations in the US and establishes a presence for the group on the East Coast, complying with Kewill’s desire to expand in the US. Exeter will retain its headquarters in Billerica, a sales office in Danville, California and its current management team. Exeter currently employs some 70 staff, but anticipates that under the command of Kewill it will witness substantial growth. The deal follows five other purchases made earlier in the year including Electricmail Ltd (CI No 3,286) and Alpha-Numeric International Inc (CI No 3,260), and added together with the Exeter deal, Kewill hopes to see a 30% increase in group sales. Exeter has received $14m of the agreed sum, and will get the remaining $7m dependent on its performance in the future.
