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August 14, 2014

TBT: Affordable IT in Acquisition Aftermath

Blanket-AdThere it is, in all of its comfy, trustworthy glory: The only two-page spread advertisement HP ever bought to promote the HP 3000. From a 1998 issue of Computerworld, it's a ThrowBack Thursday entry, from an era when the 3000 was battling for prime position in datacenters. (Click it to have a closer look.) Harry Sterling was the general manager of the 3000 group by that year. Serious business.

Simpkins AdAs part of another ad series, Terry Simpkins, now the Business Systems Director of Measurement Specialties Inc., testified to the value of running HP 3000 ERP systems. At the time MANMAN was owned by Computer Associates, who'd dubbed the software's owner the MK Group. (Click to have a closer look at his testimony.)

Now comes word that Simpkins' current company -- probably one of the single largest users of MANMAN -- has been purchased. An acquisition can be a trigger for change. Some HP 3000s have been decommissioned as a result of running a company which now must march in a new corporate file. 

It may not be so at MSI. We've heard through the MANMAN support network that TE Connectivity Ltd., which will own MSI perhaps as early as next month, was impressed by the low costs of operating more than 10 separate ERP installations around the world. MSI was purchased for $1.4 billion, according to a report in the Wall Street Journal.

There have been some instances in the system's past where the HP 3000 edged out other mid-size enterprise platforms during a merger. AS/400s got replaced in one case. At MSI, the system is running manufacturing for a company that is moving into stronger business.

TE was once called Tyco Electronics, a spinoff of Tyco International. It manufactures electronic connection products for cars, consumer products and the energy industry. Measurement Specialties had strong bookings in the last quarter before the deal was announced. In a statement at the time, it said it was "well positioned to deliver solid growth and strong earnings performance in fiscal 2015, with acceleration in fiscal 2016."

TEplusMSITE is looking at the potential for dominating the sensor industry, worldwide, by acquiring MSI.

For MSI's latest fiscal year, net income was $37.8 million on sales of $412.7 million. The company expected fiscal 2015 sales of about $540 million, including $100 million from the recent purchase of Wema System AS.

With profits in hand, and the ability to meet growing business needs, it's possible that the HP 3000 could feel as secure as the blanket in that 1998 ad, once TE wraps its arms around its newest acquisition. MSI was looking to add a 3000 expert this summer, too. Comfort sometimes comes from the certainty of managing growth at an attractive price.

11:54 PM in Homesteading, Newsmakers | Permalink

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