Press Release
HALO Technology, an OTC-traded Massachusetts software company, would be an accretive target to other enterprise solutions companies down the road, CEO Ron Bienvenu said. In the meantime, the company will continue to target bolt-on acquisitions to its current portfolio of companies as it seeks to reach USD 125m in revenues in 2006. The company currently has over USD 40m in trailing twelve month revenues, not including the recent acquisitions of InfoNow and Empagio.
As HALO grows, Bienvenu said he hopes to compete more directly with SSA Global, an enterprise resource planning (ERP) company, and private equity firm Golden Gate Capital, which recently acquired Geac Computer for USD 1bn. Oracle is also acquiring multi-channel software-based enterprise solution companies, but caters to a much larger market, he added. Bienvenu said both Golden Gate and SSA are also executing similar strategies, and that Golden Gate has a similar portfolio to HALO’s.
“We’d like to sell them some stuff,” Bienvenu said, regarding the possibility of divesting some of the companies HALO has acquired, and added the he would also consider acquiring companies from Golden Gate’s portfolio.
Bienvenu also mentioned the possibility of a merger with either SSA or SAP. “If SSA doesn’t buy us, maybe we’ll buy them. If anyone wants to talk seriously about buying, I’m listening. We’re open-minded about the company and our portfolio.”
Bienvenu declined to say what an attractive take-out valuation would be, since any valuation would depend on the merger partner. He did say, however, that any deal would have to be for over 3.5x cash flow. “I wouldn’t sell for that number. It would have to be a big one.”
SSA and Golden Gate declined to comment. SAP did not return calls for comment.
Bienvenu added that the company will work to build its reputation over the next six months, and believed buyer interest would increase as HALO’s story circulated. “I think people will be calling us,” he said. An important part of that strategy includes securing a NASDAQ listing, which Bienvenu said could occur through the acquisition of an already listed company.
HALO would look to acquire companies in the Electronic Data Interchange, ERP, Customer Relationship Management or supply chain sectors. “Our interest is in internal users, not end users. We’re not interested in consumers.” In the supply chain sector, HALO could acquire a larger company to serve as the foundation for future bolt-on acquisitions, Bienvenu said.
HALO Technology Holdings, Inc. is a global provider of a diversified range of standards-based enterprise software applications and on-demand solutions. HALO's strategy is to acquire and operate enterprise software companies with a commitment to sustainable growth. HALO portfolio companies focus on customer service, product quality and profitability to build long term customer relationships and ensure customer satisfaction today and into the future. Everyday, thousands of corporations and institutions from across the globe rely on our portfolio companies to deliver high quality, enterprise class software and services. For more information, please see our website at www.haloholdings.com.
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those relating to future opportunities, the outlook of customers, the reception of new products and technologies, and the success of new initiatives. In particular, statements contained in this press release that concern future operating results or other statements using words such as “anticipate,” “believe,” “could,” “estimate,” “intend,” “may,” “plan,” “project,” “should” “will,” or “set our sights on” constitute forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.In addition, such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include: (i) demand for the Company's products; (ii) the actions of current and potential new competitors; (iii) changes in technology; (iv) the nature and amount of the Company's revenues and expenses; and (v) overall economic conditions and other risks detailed from time to time in the Company's periodic earnings releases and reports filed with the Securities and Exchange Commission (the "Commission"), as well as the risks and uncertainties discussed in the Company's Annual Report on Form 10-KSB filed with the Commission on September 28, 2005 (the "Form 10-KSB") and the Company's Quarterly Reports on Form 10-QSB filed with the Commission on November 14, 2005 and on February 15, 2006.