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AFS Technologies, Inc. Completes the Acquisitions of
IRM Corporation and Motek Information Systems, Inc.
AFS secures $13.0 Million in Equity Financing led by CIBC Capital Partners and a
$25 million Credit Facility with Wells Fargo Foothill.
PHOENIX, AZ – August 29, 2008 - AFS Technologies, Inc. ("AFS"), a leading provider of software solutions
to the food and beverage industries, announced today that it has completed the acquisition of IRM
Corporation (“IRM”), a Dallas, TX-based leading provider of both on-demand and on-premises business
intelligence, forecasting and trade promotion management solutions to manufacturers, distributors and
brokers in the food, beverage, and CPG industries, all delivered in the Software-as-a-Service (SaaS) model.
AFS also announced today that it has completed the acquisition of Motek Information Systems, Inc.
(“Motek”), a Beverly Hills, CA-based technology leader in the warehouse management systems (WMS) and
Third Party Warehouse (3PL) market. Motek is a leader in WMS systems that utilize voice recognition and
wireless mobile data terminals. Motek’s customer base includes companies such as Associated Grocers,
Federated Co-op, Four Seasons Produce, and Southern Company.
With the acquisitions of IRM and Motek, AFS now serves over 750 customers operating within the
manufacturing, processing, and distribution segments of the food and beverage industries. AFS will employ
over 150 professionals and will be headquartered in Phoenix, AZ with offices in CA, CT, FL, TX, and
Bangalore, India.
"I am very pleased with the acquisitions of IRM and Motek. The integration of business intelligence (BI) into
AFS’ Order Management solutions, and eventually into other AFS solutions, on a SaaS basis, should
enhance AFS’ overall product value to our existing customers. In addition, not only does IRM’s customer
base expand the market potential for all of AFS’ solutions into the food manufacturing space, but also
Motek’s customer base allows AFS to introduce its technology into markets beyond food and beverage,"
said Kurien Jacob, CEO of AFS.
AFS also announced today that it has closed a $13.0 million equity financing, led by CIBC Capital Partners,
which is responsible for all of the principal investing activities of CIBC World Markets on a global basis. The
Venture Group, part of CIBC World Markets Capital Partners division, is one of the largest and most
experienced venture groups in North America. Ticonderoga Capital, an existing investor, also participated in
the equity financing.
"CIBC Capital Partners is extremely pleased to have the opportunity to support the growth of AFS," said
Alexis Boyle, Executive Director, CIBC Capital Partners, Venture Group. "We believe the company has an
excellent management team and outstanding technology, and thus, a great opportunity to become the
dominant player in its markets. We are looking forward to partnering with AFS management to continue to
successfully build the company."
AFS also announced today that it had closed a $25 million credit facility arranged by Wells Fargo Foothill,
part of Wells Fargo & Company (NYSE:WFC). A portion of the $38 million of total proceeds was used to
finance the acquisitions of IRM and Motek and retire outstanding mezzanine debt, with the remaining
amount to be used for possible further acquisitions.
“I am excited to have been able to secure the partnership and financial support of CIBC Capital Partners
and Wells Fargo Foothill, two leading, global financial institutions. Their support and expertise building
software companies will be extremely critical to the successful growth of AFS. I’m looking forward to
working with Wells Fargo Foothill’s Technology Finance team to continue to build a world class
organization,” said Kurien Jacob.
Concurrently with the closing of the above transactions, Alexis Boyle, Executive Director of CIBC Capital
Partners - Venture Group, and David Butler, President of Ticketmaster-Irvine (fka Paciolan, Inc.), have
joined the Board of Directors of AFS.
"With the financial support of CIBC Capital Partners and Wells Fargo Foothill, coupled with AFS’s state-ofthe-
art technology platform, AFS now has the technology, the ability to provide a complete suite of products
and services and the scale and profitability to continue to successfully consolidate industry providers, and
emerge as the premier, leading provider of software solutions to the food and beverage industries," said
Walter Barandiaran, Chairman of AFS and a Managing Partner of Argentum.
About AFS Technologies, Inc.
AFS Technologies Inc. is the leading provider of software solutions for the food and beverage industry. The
company serves over 750 customers across North America and the Caribbean with solutions designed to
reduce costs, increase efficiency, increase sales and margins, streamline internal processes and assist in
regulatory compliances. AFS offers the industries only complete end-to-end software suite utilizing service
oriented architecture (SOA) and the Microsoft .NET framework. This unique modularly designed system
offers solutions for Distribution, Sales & Marketing, Financials, Processing, Warehouse Management,
Transportation, and Database Services featuring the industry’s largest database of product information and
recipes, the PROFILE Database. For more information, please contact AFS Technologies via email at
info@afsi.com, by phone at (602) 522-8282 or visit us on the web at www.afsi.com
About IRM Corporation
IRM provides both on-demand and on-premise business intelligence, forecasting and trade promotion
management solutions to manufacturers, distributors and brokers in the food, beverage, and CPG industry -
- all delivered in a Software-as-a-Service (SaaS) model. For more information, please visit:
www.irmcorporation.com
About Motek Information Systems, Inc.
Founded in 1991, Motek is an established, profitable software company that is a technology leader in the
Warehouse Management Systems (WMS) market. Motek’s success can be attributed to three specific
factors that differentiate Motek from others in this space: scalable product, process, and support. For more
information, please visit: www.motek.com
About CIBC Capital Partners
Founded in 1989, CIBC Capital Partners is responsible for all of the principal investing activities of CIBC
World Markets on a global basis. CIBC Capital Partners manages numerous investment portfolios with total
committed funds in excess of CAD$5.4 billion and investments in over 250 companies and approximately
150 third party funds. CIBC Capital Partners make both direct investments and fund investments across
diverse industries, geographies and stages of development. Since 1989, CIBC has provided private equity,
mezzanine and bridge financing to create, grow and recapitalize companies in North America, Europe and
Australia. CIBC Capital Partners - Venture Group is one of the largest and most experienced venture
groups in North America. Focusing on growth-oriented businesses in dynamic industries, the Venture Group
looks to help founders and management teams take their company to the next level. The Venture Group is
part of CIBC World Markets' Capital Partners Division, alongside the merchant banking and private equity
funds. For more information, please visit: www.cibcwm.com
About Wells Fargo Foothill
Wells Fargo Foothill is a leading provider of senior secured financing to middle-market companies across
the United States and Canada, offering flexible, innovative credit facilities from $10 million to $1 billion and
more. It is part of Wells Fargo & Company, a diversified financial services company with $609 billion in
assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million
customers from almost 6,000 stores and the Internet (wellsfargo.com) across North America and elsewhere
internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of two banks worldwide, to
have the highest possible credit rating from both Moody’s Investors Service, “Aaa,” and Standard & Poor’s
Ratings Services, “AAA.” For more information, visit Wells Fargo Foothill on the Internet at
www.wellsfargofoothill.com
About Ticonderoga Capital
Ticonderoga invests in later stage business process outsourcing, healthcare business services and
software as a service (SaaS) firms. It focuses upon companies with sustained revenue and proven gross
margins. Ticonderoga seeks growth businesses, which have achieved a balance between sustainable
growth and expense control. Its capital is typically used to accelerate revenue growth, make acquisitions, or
provide liquidity to founders and existing shareholders. Ticonderoga is often the lead and first institutional
investor, but also participates as a member of larger syndicates with other respected investment groups.
Furthermore, Ticonderoga is often a minority investor thus it views its relationship with management crucial
to its success. Therefore, its objective is to create long-term partnerships with exceptional management
teams who are building growth businesses and require Ticonderoga’s experience, knowledge, contacts and
capital to maximize their success. For more information, please visit: www.ticonderogacap.com
About The Argentum Group
The Argentum Group is a New York-based private equity firm that provides expansion capital to rapidly
growing small and mid-sized businesses with market leading potential. Argentum targets those industries
experiencing rapid growth or undergoing fundamental change in the areas of business services, healthcare,
software/SaaS, and clean (environmental) technologies/services. Argentum serves as general partner of
investment partnerships with over $400 million of capital under management. Since its founding in 1988
Argentum has invested in over 100 companies across a broad range of industries. For more information,
please visit: www.argentumgroup.com
Media Contact:
AFS Technologies, Inc.
Kurien Jacob
Chief Executive Officer
(602) 443-4222
kurienj@afsi.com |
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