SofTech Inc, the Grand Rapids, Michigan-based provider of CAD/CAM software and systems, is acquiring privately-held Adra Systems Inc, provider of CAD/CAM software and services. Adra markets its products, which are primarily in the two-dimensional space, to mechanical and manufacturing engineers, designers and draftsmen. It saw 1997 revenues of $16m. The acquisition gives SofTech added distribution channels in Europe and Asia, 1,500 customers worldwide and roughly 25,000 installed seats of 2D CAD. Financial terms of the deal were not disclosed, but SofTech says it will fund the deal primarily with debt, with an insignificant and non- dilutive amount of shares issued. The shares that will be issued will be in the form of warrants to buy shares at prices in excess of pre-transaction trading prices. The company expects to have the funding in place within 60 days. SofTech reckons the acquisition will double its revenue – it saw $14.7m in fiscal 1997 – and contribute to its profitability immediately.
