ERP Software Encompix Leader Chuck Stewart Explains the Acquisition by Made2Manage

Released on = May 26, 2006, 12:19 pm

Press Release Author = Roger Meloy

Industry = Software

Press Release Summary = ERP Software Encompix Leader Chuck Stewart Explains the
Acquisition by Made2Manage

Press Release Body = On Monday, March 13, 2006, Indianapolis-based Made2Manage
Systems, Inc. completed its acquisition of Encompix, Inc. The acquisition was
Made2Manage Systems' fifth during the past 20 months. When one software company
acquires or merges with another, there are primarily three assets involved, the
product(s), the customer base, and the employees. In the past many of these
acquisitions involved product consolidation, massive layoffs, and customers left
with an obsolete product with little hope of any major investment. So why is the
acquisition of Encompix by Made2Manage different? Chuck Stewart, one of original
co-founders, answered in a recent interview.

"We decided to look at the market opportunity for a merger or acquisition with a
larger company. We were thrilled that 12 companies expressed an interest in
Encompix. We picked three companies with which we had significant discussions, and
eventually we chose Made2Manage Systems. Avoiding an unhealthy debt structure was
the first business reason behind the decision. The second reason was from a new
systems sales perspective. We always thought that Encompix should be part of a
larger software company, mainly because of the types of clients we attract. It
seemed that every year we got involved with one or two large sales opportunities. We
did very well at the plant level and often ended up vendor of choice after the
evaluation. The stumbling block was when our proposal went up the corporate ladder
and reached a CIO or CFO. They would look at the size of Encompix and find it
difficult to justify the investment based on the potential risk. We've always
believed that being part of a larger company would give us the financial strength to
overcome these objections and win larger value sales. From a business perspective,
the revenue from one or two larger sales each year makes a considerable difference
in how we were able to run the company, especially our ability to reinvest in the
product, offer new technology, and add people. We wanted to be part of a very
stable financial environment for our customers as well. Our customers are very
important to us, and we wanted to ensure that we could support them, as well as move
forward with investments in new technology that will enable them to use Encompix for
life."

Encompix (www.encompix.com) a business unit of Made2Manage Systems, has filled the
manufacturing software requirements of engineer-to-order companies since 1992. The
company name reflects a commitment to developing business application solutions that
encompass the complex areas of project-based and job-based manufacturing. Encompix
provides ETO manufacturers with a competitive advantage by improving bottom line
results.




Web Site = http://www.encompix.com

Contact Details = Melissa Stahley
Made2Manage Systems
(317) 249-1270
mstahley@made2manage.com
www.made2manage.com

Roger Meloy
Encompix Inc.
(513) 733-0066, ext. 13
rmeloy@encompix.com
www.encompix.com

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