Retail software provider Torex Retail Plc is to expand in North America with an agreed bid of up to CAD 38.5m ($32.9m) for Systech Retail Systems Corp, which offers software to the US supermarket and grocery sector.
A Canadian company quoted on the Toronto stock exchange, Systech is based in Raleigh, North Carolina and is doing business as Openfield Solutions after the loss-making company emerged from Chapter 11 bankruptcy protection. In the six month to July 31, it made a net loss of CAD 466,000 ($398,150) on revenue down 0.5% at CDN 3.9m ($3.3m). The Openfield customer base, which includes Safeway, is the main attraction to acquisitive Torex.
Torex executive chairman Chris Moore said the acquisition would be immediately earnings enhancing and will take it into the massive market for tier-one grocery and supermarket systems for the first time with a market leading application.
In the six months to June 30, Torex net income fell 46.4% to 754,000 pounds ($1.3) on revenue up 108.8% at 52.5m pounds ($93.1m).