Geac Computer Corp has found its new president and CEO after initiating a search at the beginning of February. The Markham, Ontario-based software house has appointed Douglas Bergeron, who takes over from the current chairman, president and CEO, William Nelson, on April 26th. Nelson, 65, is retiring, but will stay on as chairman. Bergeron, who is 38, will also join the board of directors.
Previously, Bergeron was Group CEO of SunGard Brokerage Systems Group, a large group of application software companies within SunGard Data Systems Inc. Like Geac itself, SunGard has grown rapidly through multiple acquisitions, and Bergeron is said to have been a key contributor to the firm’s overall acquisition and growth strategy, SunGard has made over 60 acquisitions since it was formed in 1993 and is now one of the 20 largest software companies in the world.
Geac, Canada’s largest software house, has acquired 18 companies since 1996, including Dun & Bradstreet Software Inc at the end of 1996. But last summer, investor confidence was shaken when the company’s acquisition mastermind, vice chairman Stephen Sadler, said he would not seek re-election to the board. A former chief executive, Sadler resigned as CEO two years ago to focus purely on acquisitions. Much of Geac’s recent success has been built around a careful acquisition strategy that targets distressed software companies ripe for Geac style corporate turnarounds.
Last month, Geac reported revenue of $215.4m, up 24% from the $174.2m it reported in the same quarter last year. Net income was $39.9m, down 11% from the previous year. For the nine months, revenue was $582.9m, up 22% over the $478.6m reported in the same period the previous year. Net income was $122.4m, or $1.98 per share, up 6% over the $115.7m, or $1.95 per share earned the previous year. The company blamed Year 2000-related costs and weak software license sales for the shortfall in the figures, which did not meet analysts expectations. Despite the disappointing Q3, however, Geac insists that it is generating strong cash flows and that it is well-positioned for future acquisitions.
