On your MARC, get set, buy!
Flush with venture capital, RedPrairie Corp. has gone on a buying spree. In late January, it purchased warehouse software specialist MARC Global. The combined company is expected to generate $172 million in revenue and $39 million EBITDA (earnings before interest, taxes, depreciation and amortization) in 2006. The purchase price was not disclosed, but MARC was believed to have had revenues of about $25 million in 2005.
The deal follows two other recent, but smaller, acquisitions by RedPrairie. Early this year, it acquired Alta A/S, a Danish company that provides manufacturing event management solutions for large automotive suppliers. The Alta A/S acquisition strengthens RedPrairie's presence in the automotive market. In October, RedPrairie acquired RangeGate, a UK- based supplier of mobility and tracking solutions that help grocers and other perishable-goods retailers manage home deliveries.
RedPrairie appears to be on track for world domination. Though MARC Global is based in Atlanta, it has offices in Europe, China and Australia, giving RedPrairie a major presence in each of those markets. As consulting firm Aberdeen Group wrote in a research brief, "The MARC Global acquisition fits neatly into [RedPrairie's] strategy for serving Tier 1 companies as well as mid-market enterprises across the world."
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