Financial software house Flexi International Software Inc has acquired UK-based financial data warehousing firm The Dodge Group to expand its European operations and boost its status as the conversion to the Euro approaches. The Shelton, Connecticut company has bought privately held Dodge for $754,000 and 863,500 shares of common stock, which were sold at around $7 each – amounting to around $6m. Flexi’s president Jenny Chang said the company is looking Dodge to provide it with a quick expansion into Europe. It will also get its hands on Dodge’s Financial Data Warehouse product, a client-server system incorporating a range of financial and non-financial data, which will sit on top of its own FlexiFinancials suite of financial applications. FDW performs general ledger accounting procedures and has a drill down function for more in depth analysis. What is of particular interest to Flexi, is the product’s ability to produce management, statutory, corporate and other reports in multiple currencies, including the Euro. It can produce the information for multiple time periods and in high volumes, which is generally required by large financial institutions. Flexi already has its FlexiFinancials suite of financial applications that contain multi-currency functionality, and is targeting multinational companies looking to replace financial systems and make them Euro compliant. The acquisition will add 70 staff to Flexi’s existing workforce of 250, and give it new office sites in London, New York, Paris, Hong Kong, Tokyo and Johannesburg. Dodge sees the purchase as beneficial as well. Dodge global partner manager Steve Singleton said: Everybody here feels very positive. It increases our critical mass and our presence in North America. Dodge’s chief executive, Alan Hanbrook will become a senior vice president at Flexi, and be responsible for the company’s international operations. Dodge will now assume the Flexi name. Chang says the company always has its eyes open for acquisitions that fit in with its growth strategy and said of Dodge: I don’t think we could have found a better fit. The purchase is expected to be non-dilutive to 1998 earnings, and to contribute to earnings in 1999.
