Mergers and Acquisitions

New York private equity firm to acquire RedPrairie; Merge Healthcare makes offer to acquire competitor; Weyauwega company acquires Wiza Industries in Muskego

New York private equity firm to acquire RedPrairie

RedPrairie Holding Inc. has abandoned its plan to become a publicly held company and instead entered into a definitive agreement to be acquired by a fund affiliated with New Mountain Capital LLC, a New York private equity firm.

Executives at RedPrairie, which is based in the Town of Brookfield, said the acquisition will enable the company to accelerate its rapid growth rate while enhancing its commitment to customer success.

“Our objective is to be the leading provider of productivity solutions for manufacturers, distributors and retailers,” says Mike Mayoras, chief executive of RedPrairie. “Our relationship with New Mountain Capital will allow us to reach our strategic goals quickly, efficiently and with certainty. We believe there are significant opportunities to provide more value to our customer base by expanding our product portfolio and entering new markets.”

Alok Singh, managing director of New Mountain Capital, said, "We are delighted at the prospect of being able to add RedPrairie to our family of companies. They have consistently, over their long history, been committed to the success of their customers. We aim to work closely with RedPrairie’s management team to help them accelerate their growth and strategic development, making them an even more valued partner to their customer base."

David Golob, chairman of the RedPrairie board of directors and partner at Francisco Partners, said, “RedPrairie has a strong vision, proven set of solutions and talented management team. I believe RedPrairie and New Mountain Capital will be a great combination. I wish them continued success.”

With the acquisition, the RedPrairie name will be retained, as will the company’s management team and employees.

Last fall, RedPrairie filed paperwork with the U.S. Securities and Exchange Commission for a $172.5 million initial public offering.

“We are not pursuing the IPO at this point,” said RedPrairie spokesman Kari Janavitz.

New Mountain Capital currently manages private and public equity funds with approximately $8.5 billion in aggregate capital commitments.

Merge Healthcare makes offer to acquire competitor

West Allis-based Merge Healthcare Inc. has made an offer to acquire Amicas Inc. for $6.05 in cash per share in a deal with an estimated value of $248 million.

The stock for Amicas, which is based in Boston, is traded on the Nasdaq Stock Exchange with the ticker symbol AMCS. Amicas is a provider of imaging IT solutions.

Merge’s proposal represents is 13 percent higher than a previously announced offer to acquire Amicas by a newly-formed affiliate of Thoma Bravo LLC for $5.35 cash per share.

Last week, Merge intervened in Massachusetts litigation challenging the adequacy of Amicas’ disclosures relating to this transaction, as well as the process by which its proposals have been considered by the AMICAS board of directors.

Merge has received a signed bridge financing commitment from Morgan Stanley to provide $200 million of debt financing. Based on that commitment and available cash, including $40 million of pre-funded equity investments from mezzanine investors, Merge has proposed to commence its offer and close the acquisition as quickly as possible thereafter.

Merge develops solutions that automate health care data and diagnostic workflow to enable a better electronic record of the patient experience, and to enhance product development for health IT, device and pharmaceutical companies.

Weyauwega company acquires Wiza Industries in Muskego

Wiza Industries LLC, a Muskego industrial machine shop that entered Wisconsin Chapter 128 protection last year, has been acquired by Weyauwega-based World Class Manufacturing Group.

Before it entered Chapter 128 protection, Wiza Industries had about 250 employees. The company now has about 40 workers in its 200,000-square-foot plant, said Darold Paisar, president of World Class Manufacturing.

“Long-term (growth) is to be determined, but we’re calling a few people back every week,” Paisar said. “I can see there being 100 people working there by the end of the year.”

World Class Manufacturing has effectively been operating the Wiza facility since Dec. 30, Paisar said. The company was able to reach terms with Wiza’s owners and its court-ordered receiver this week.

“We were able to save five or six good clients,” Paisar said. “We’re trying to put a (long-term) plan together.”

The agreement with Wiza’s former owners is only effective for one year, Paisar said.

“We’re taking one hell of a risk,” he said. “We did this to save jobs in Wisconsin. If this facility is going to be open next year, I don’t know.”

At its peak, Wiza Industries had about $56 million in annual revenues. While it will take several years to rebuild the company, Paisar sees an opportunity for significant sales there this year.

“I think we could do about $10 million worth of business this year,” he said.

Financial terms of the acquisition were not disclosed.


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