The consideration being paid is comprised of a cash payment of $7 million at closing and additional consideration to ASNA's shareholders if certain profit and revenue targets are achieved by ASNA, in 2007, 2008 and 2009.
As previously reported, ASNA has been developing visual programming and systems software for the midrange community since 1982. ASNA's, flagship product, "Monarch," is a fully-integrated solution for transforming RPG applications to the Microsoft .NET platform. This fully automated migration solution directly addresses the 750,000 AS/400 computers in major business and government organizations across the world, a market estimated to be at least $75 billion.
ASNA is a Microsoft Gold Certified Partner, a Microsoft Visual Studio Industry Partner, an IBM Tools Network Partner, and an Advanced Tier Member of IBM's PartnerWorld for Developers.
"ASNA is a great fit for us, and will significantly contribute to our future growth," said Arik Kilman, CEO of BluePhoenix. "The AS/400 market is a huge one, and we will pursue it very aggressively."
Kilman concluded, "We believe that ASNA will add approximately $1million to our revenues this year, so we are raising our revenue forecast to $86.5 million, and also raising our Non GAAP profit forecast for 2007 to $0.68. We also believe that in 2008, ASNA's contribution will be notably greater."
About BluePhoenix SolutionsBluePhoenix Solutions (NASDAQ: BPHX) is a leading provider of value-driven modernization solutions for legacy information systems. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, re-hosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.
BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking, and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, DaimlerChrysler, Danish Commerce and Companies Agency, Europe Assistance, Lawson Products, Los Angeles County Employees Retirement Association, Merrill Lynch, SDC Udvikling, and TEMENOS. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.