Geac Sells Interealty Business to The First American Corporation
October 03 2005 - 8:02AM
PR Newswire (US)
Company divests non-core asset to continue targeted focus on
enhancing Performance Management integration and sales MARKHAM, ON
and WALTHAM, MA, Oct. 3 /PRNewswire-FirstCall/ -- Geac(R) (TSX:GAC,
NASDAQ:GEAC) today announced that it has sold in an all cash sale
of US$35 million its Interealty division, which specializes in
Web-based applications for realtors, to The First American
Corporation (NYSE:FAF), a Fortune 500 business information
provider. Interealty will be added to First American Residential
Group, a subsidiary business line established by First American in
2002 to address the real estate brokerage, multiple listing service
(MLS) and relocation market segments with the full array of First
American capabilities. Interealty is a leading service provider to
the residential retail real estate market with innovative products
such as its MLS systems, MLXchange and MLXchange Professional. Over
the past several years, Geac's management team has revitalized the
Interealty business and significantly improved operating
performance. However, Geac recognizes that by focusing on its core
Performance Management strategy, it can best achieve the highest
value for its customers, shareholders and other stakeholders.
"While a formidable player in the residential retail real estate
market, Interealty is not core to our Performance Management
integration strategy. It is, however, a complementary and strategic
asset for First American's business," said Charles Jones, President
and CEO of Geac. "Geac is increasingly focused on how its
Performance Management technology can integrate with existing Geac
applications to assist in differentiating our many product lines.
We have seen particular success with Geac product integration
initiatives across our Enterprise Applications business and within
the Industry Specific Applications - including integration with our
Local Government and Commercial Systems Divisions and market
opportunities identified for our Restaurants Division. Geac is also
focused on how these important applications can integrate with
non-Geac products to provide world class financial management
solutions on a broad base of existing transaction and operating
systems. With both Geac and non-Geac product integration
initiatives, we have witnessed sales of our Performance Management
suite increase with existing and new customers." Mr. Jones
continued, "Today's sale is also a strong example of our ability to
turn around challenged businesses and to achieve solid market value
for non-strategic assets. Two years ago, Interealty was in decline
and losing money. Through the strong focus of Geac management and
the extraordinary efforts of the Interealty team, we have
transformed this business. We have sold Interealty, a non-strategic
asset to Geac, in an all cash transaction valued at a multiple of
1.5 times trailing revenues to a Fortune 500 company that will
provide increasing strategic opportunities for this thriving
enterprise and its dedicated and talented employee base."
Headquartered in Santa Ana, Calif., First American Residential
Group, Inc., provides service, technology, outsourcing and product
solutions to members of the real estate and relocation industries.
Working in concert with other First American units, the company
provides a comprehensive portfolio of residential real estate
services including transaction management, title insurance, home
warranty, appraisal and relocation services. "We're pleased to
bring aboard the leading products and strong people of Geac's
Interealty business," said Stephen C. Roney, president and chief
executive officer of First American Residential Group. "We are
equally delighted to welcome their many customers to the
unparalleled tradition, innovation and standard of care that are
the hallmarks of First American." The US$35 million purchase price
is subject to a post-closing working capital and capital
expenditure adjustment as of the closing date. Under the terms of
the agreement, Geac will provide certain transitional services
after the close of the transaction. Employees of Interealty will be
offered employment with First American Residential Group, and
Interealty's management, office locations, company name and product
brands will remain unchanged. About First American The First
American Corporation (NYSE:FAF), a Fortune 500 company that traces
its history to 1889, is the nation's largest data provider. First
American combines advanced analytics with its vast data resources
to supply businesses and consumers with valuable information
products to support the major economic events of people's lives,
such as getting a job, renting an apartment, buying a car or house,
securing a mortgage and opening or buying a business. The First
American Family of Companies, many of which command leading market
share positions in their respective industries, operate within six
primary business segments, including: Title Insurance and Services,
Specialty Insurance, Mortgage Information, Property Information,
Credit Information and Screening Information. With revenues of
$6.72 billion in 2004, First American has approximately 2,000
offices throughout the United States and abroad. More information
about the company and an archive of its press releases can be found
at http://www.firstam.com/. About Interealty Interealty, a division
of Geac, is a premier provider of Multiple Listing Service (MLS)
systems and real estate software in North America. Interealty
offers a full line of technology products and support services to
the real estate industry, including MLS organizations, franchisors,
and agents. For more than three decades, Interealty has provided
North America's leading real estate boards and associations with
innovative products like its leading MLS system, MLXchange.
Headquartered in Vienna, Virginia, Interealty has offices
throughout North America. About Geac Geac (TSX: GAC, NASDAQ:GEAC)
is a global enterprise software company that addresses the needs of
the Chief Financial Officer. Geac's best-in-class technology
products and services help organizations do more with less in an
increasingly competitive environment, amidst growing regulatory
pressure, and in response to other business issues confronting the
CFO. Further information is available at http://www.geac.com/ or
through e-mail at . This press release may contain forward-looking
statements of Geac's intentions, beliefs, expectations and
predictions for the future. These forward-looking statements often
include use of the future tense with words such as "will," "may,"
"intends," "anticipates," "expects" and similar conditional or
forward-looking words and phrases. These forward-looking statements
are neither promises nor guarantees. They are only predictions that
are subject to risks and uncertainties, and they may differ
materially from actual future events or results. Geac undertakes no
obligation to update or revise the information contained herein.
Important factors that could cause a material difference between
these forward-looking statements and actual events include, among
other things: our ability to increase revenues from new license
sales, cross-sell into our existing customer base and reduce
customer attrition; whether we can identify and acquire synergistic
businesses and, if so, whether we can successfully integrate them
into our existing operations; whether we are able to deliver
products and services within required time frames and budgets to
meet increasingly competitive customer demands and performance
guaranties; risks inherent in fluctuating international currency
exchange rates in light of our global operations and the
unpredictable effect of geopolitical world and local events;
whether we are successful in our continued efforts to manage
expenses effectively and maintain profitability; our ability to
achieve revenue from products and services that are under
development; the uncertain effect of the competitive environment in
which we operate and resulting pricing pressures; and whether the
anticipated effects and results of our new product offerings and
successful product implementation will be realized. These and other
potential risks and uncertainties that relate to Geac's business
and operations are summarized in more detail from time to time in
our filings with the United States Securities and Exchange
Commission and with the Canadian Securities Administrators. Please
refer to Geac's most recent quarterly reports available through the
website maintained by the SEC at http://www.sec.gov/ and through
the website maintained by the Canadian Securities Administrators
and the Canadian Depository for Securities Limited at
http://www.sedar.com/ for more information on risk factors that
could cause actual results to differ. Geac is a registered
trademark of Geac Computer Corporation Limited. All other marks are
trademarks of their respective owners. DATASOURCE: Geac Computer
Corporation Limited CONTACT: Investor and Media: Alys Scott, Geac,
(508) 871-5854,
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