Kinross Software Announcement
Leading Software and Services Business Acquires Competitor to Enhance Microsoft Solution Delivery.
Cal Software has today announced the business acquisition of both Kinross Computer Systems Ltd and Kit Software Ltd. The newly combined businesses will now trade as Kinross Software Limited based in Perth, Scotland. The acquisition will enable the business to organically grow the Microsoft Dynamics GP (Great Plains) and CRM Microsoft Solutions provision to a horizontal market place. It will also consolidate the company's position as the UK's market leading vertical solution provider for agribusiness, fisheries and traded commodities.


Kinross Software's identity will be maintained. It has been awarded Microsoft Gold Partner status, making it a recognised market-leading provider of Microsoft based business solutions. The company will continue to service its customer base through its own recognised product brands, from both Scotland and England. The effective doubling in size of the customer base and the associated economies of scale will bring many benefits to both customers and the business alike. With a combined business backed by blue chip international clients, Cal and Kinross have financial stability, security and a wealth of expertise in leading technologies.

Jim Richardson, Financial Director of the Holding Company Paterson's Quarries was asked about the decision to sell Kinross Computer Systems Ltd and Kit Software Ltd. He said " We have always had a trade sale in mind as this was not our core business. We have been very committed to finding the right company to take both Kinross and Kit forward, to make a deserved success of them both. We have been delighted with the level of interest shown in the companies. This recognises our own considerable product investment and the strong client list, of which Paterson's are also a member. The identification of the best-suited business to take the companies on was key. Our intermediary focused on evaluating the company most able to service the customer base, leverage the Microsoft technology and develop the business to deliver future growth. A review of Cal's Management strengths, its business approach and forward strategy for its target markets, put it head and shoulders above other companies interested in acquiring the business. Cal demonstrated that it has all the right qualities, together with complementary products and a comprehensive understanding of the Kit and Kinross markets. Together with our clients the new business will have a customer list to take the company to a new level. We are confident that Cal will bring the success befitting our investment in the Kit product to fruition and will support our own software and service needs as a customer for many years to come."

Commenting on the acquisition of the new company, Cal Software's Commercial Director, Keith Richards said:

"What is exciting about this announcement is that we can also leverage the Microsoft and existing technologies. This supports the development of the Cal Isonics horizontal sales to CRM, Great Plains and Development Projects.

We can also make an unambiguous statement to agribusiness, fisheries and commodity trading customers about our commitment to provide them with a competitive edge, enabling us to generate organic growth.

Our complementary strengths will enable us to provide a broader product offering to customers who will be able to take advantage of new innovations as they arrive. We can deliver this model over a wider geographic area, as well as providing security and a cost effective high quality service from small business through to enterprise level companies."

The strategy is to create a platform, which allows further expansion into Europe and beyond. Building on the current strengths of both businesses, will enable the companies to maintain, grow and deliver a leading sustainable market position.

Cal Software's Managing Director, Ken Hailwood said:

"The opportunity to both grow the overall business and remain at the forefront of technology as leading exponents is tangible. It must also be recognised that financial security going forward for product investment and services has to be met by a stronger commerciality than has previously been apparent. In consolidating highly regulated industries, with a proven need for specialist systems, we can ensure customers have the best systems available to meet their needs.

Commercial and operational pressures make today's business climate challenging and unpredictable. We represent a welcome certainty for customers looking for industry specific, reliable, scaleable, modern package software."

Cal is determined to establish a long-term market position for both businesses. This will bring much needed stability, investment and leadership providing the ability to offer the best products and technology to the market.

In overall terms this announcement is significant for companies looking to leverage Microsoft's technology and product portfolio. It represents a milestone development in the UK and international vertical market sectors. Together the businesses deliver a formidable range of highly cost effective, technologically future proofed software solutions. This is further enhanced through the provision of high quality project services, maintenance and support for customers.