News
ECi swoops for Red Cheetah Further consolidation in the OP back-office systems sector
Andrew Morgan: President role at ECi In a major move in the OP systems and software market in the US, ECi announced the acquisition of rival provider Red Cheetah just as this issue of OPI Technology Solutions was going to press. The acquisition closed on 1 June, but financial details were not disclosed. There have been persistent rumours for a number of years that ECi would make such a move, but Red Cheetah CEO Andrew Morgan always maintained that his business was not for sale. The two Texas-based firms have been working together recently as part of the software providers’ alliance OPSA. It would appear this could have been the catalyst to ECi and Red Cheetah taking things a step further – although some may claim OPSA was set up with consolidation in mind. In a blog post Morgan revealed that he has had “numerous discussions” over the past year with the ECi executive team, in particular with CEO Ron Books. “Each of these conversations has led me to the conclusion that ECi is extremely well led by Ron and a very different business than they were prior to his taking over leadership,” stated Morgan. “I am excited to go forward with them in support of our one simple goal: to provide solutions that allow the independent dealer to grow and thrive, all backed by excellent customer service.”
“Actively engaged” According to an ECi customer FAQ document, Red Cheetah’s Morgan and COO Chris Grigsby will remain “actively engaged” in daily Red
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Technology Solutions | 2013
Cheetah operations, and Morgan will have an “expanded role” across the entire ECi Office Products division in a co-President position alongside Anshul Choudry, who oversees the Britannia and DDMS platforms. All management at ECi is set to remain in place, it was announced. Morgan provided a bit more insight into the decision to join the ECi family. “We have all watched the OP industry twist, turn and reshape for years,” he noted. “The continued efforts of the Red Cheetah team within the ECi portfolio will ensure independent dealers can continue to compete. By joining together, we will have significant opportunities
team. The big question mark now is to what extent dealers will be willing to stay on the Red Cheetah platform now that it is part of ECi. Many customers reportedly signed up to Red Cheetah because they were unhappy with their ECi experience and will probably have doubts, even if things have changed for the better in the last few years under Books’ leadership. The potential for customer attrition resulting from the acquisition was not lost on rival software provider AOSWare. It announced – on the day the ECi/Red Cheetah tie-up was made public – a strategy aimed at acquiring Red Cheetah dealers, waiving all set-up
“Red Cheetah’s contribution to the independent dealer channel was one that could not be ignored” Ron Books, CEO ECi to better serve our dealers’ everexpanding technology requirements [and] access to additional products, resources and services that would have otherwise been difficult to achieve on our own.” Commenting on the acquisition, ECi CEO Ron Books said: “Since 2001, Andrew Morgan and the principal partners in Red Cheetah have provided ERP and e-commerce technology that have helped shape the office supplies industry. Red Cheetah’s contribution to the independent dealer channel was one that could not be ignored.” Books continued: “Thus, when we had the opportunity to discuss a possible acquisition, we knew it was the right move. This acquisition will allow us to further leverage available resources and infrastructure as well as secure tighter integrations and partnerships across the industries each of [our customers] serve.” Red Cheetah has certainly had a reputation of being a thorn in ECi’s side over the last few years, and inroads made into its dealer customer base can’t have been lost on Ron Books and his management
fees for Red Cheetah dealers that signed up to AOSWare over a 30-day period. “We feel this strategy will allow Red Cheetah dealers to get a much more robust back-end system at an entry-level price,” said AOSWare Managing Partner Sonny Arora, who added that he had been busy fielding calls from interested resellers. You can read more comment from Andrew Morgan and Ron Books, as well as further reaction from the industry, in the July/August issue of OPI magazine.
Sonny Arora: Sees opportunities for AOSWare