At last, a buyer for SSA

By ADAM GIFFORD

System Software Associates, a struggling vendor of ERP and manufacturing software, has been taken over by acquisition specialist Gores Technology Group.

The company has been on the market for some time, but buyers shied away because of debts of more than $US200 million and the risk of Y2K-related liabilities. Its shares were down to a few cents.

The deal involves SSA going into voluntary Chapter 11 bankruptcy and selling most of its assets to Gores for $US52 million cash and 25 per cent of the common stock of the newly formed Gores subsidiary. The cash will go to senior secured lenders, while the stock is available for claims of unsecured creditors.

Chicago-based SSA has been a long-term player in New Zealand, with about 70 mid-range and large manufacturing sites using its BPCS (Business Planning and Control System) software designed to run on IBM AS/400 servers.

Attempts to keep up with changing technology caused SSA to stumble badly. A new management team set out last year to find a strategic buyer who could finish off the financial restructuring. Revenue last year was down to $US316 million.

Graeme Cooksley, president of SSA Asia Pacific Japan, said the new organisation would have increased working capital to help it grow. "This will allow SSA to invest and enhance its flagship software product, eBPCS and further develop partnerships with the world's leading providers of technology, completing the transition to a solutions provider."

SSA has conceded that it will never overhaul industry heavyweights such as SAP and JD Edwards, but because of its huge manufacturing base it is in a potentially strong position to sell other manufacturing-related software.