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White Cap Industries, Inc., Costa Mesa, CA, has acquired Nail Fast, Inc., Albuquerque, NM, a supplier of fasteners, tools and materials to professional contractors in the New Mexico market for 17 years. White Cap supplies professional contractors in 13 states, with 60 locations and combined annual revenues of $400 million.
NxTrend Technology, Inc., Colorado Springs, CO, has acquired Dimasys Software, Lewisville, TX, a privately-held provider of wholesale distribution software. Its products include Touchstone and more recently Enspire. Its customers include small to medium-sized industrial, plumbing and HVAC distributors. "This acquisition will allow NxTrend to bring solutions to a wider segment of the distribution market, said NxTrend President and CEO Michael J. Cornell. "We now have a broader product offering that can appeal to both small and large distributors in many new verticals NxTrend has not historically pursued. On the whole, Dimasys' customers are smaller distributors, and we plan to work with them to further their penetration into that market segment." Cornell said another strategic advantage with the acquisition is the ability to further segment the market based on technology preferences.
Hardball and a few curves in software consolidation! News of PeopleSoft's proposed friendly acquisition of J.D. Edwards on Jun. 2 for $1.6 billion in stock raised a few eyebrows in the fragmented distribution software industry. PeopleSoft would buy its way into more than 20 industries that J.D. Edwards serves, including a broad range of services, manufacturing, distribution and asset-intensive industries. Then the following Friday Oracle Corp., the #2 software maker in the world, offered to buy PeopleSoft in a hostile $5.1-billion offer, raising hairs on the back of a lot of necks, including J.D. Edwards, which could get left on the sidelines if such a deal takes place. While IBM has had a segment focus on distribution for several years, it has only been in the past few years that the industry has attracted more than passing attention from the big players. Intuit Inc. bought distributor software provider Eclipse last year for $85 million in cash as an entry into a good vertical market. And Microsoft has been increasing its offerings to supply chain and distribution segments through its acquisition of Great Plains Software in 2001.
Hughes Supply, Inc., Orlando, FL, a distributor of construction and industrial materials, equipment and supplies, reported its 2004 first-quarter sales ended May 2 were $782.8 million, down 1% from the same period a year ago and included revenues from the Utiliserve acquisition, while sales in the year ago quarter included the benefit of an extra fiscal week. Net income totaled $11.8 million compared with $12.4 million in the prior year's first quarter.
The Industrial Distribution Association (I.D.A.) announced that the 2003 I.D.A./ISMA Fall Convention, Nov. 22-24, 2003, in Chicago, will now be named I.D.A.'s Annual Distributor &