Volume 16, Number 14 -- April 9, 2007

ERP Vendors CMS Software and XKO Software to Merge

Published: April 9, 2007

by Timothy Prickett Morgan

Consolidation is not just happening at bigger software companies. It's also happening, perhaps under the radar, at smaller software firms. For example, last week, two mid-tier ERP software providers, CMS Software and XKO Software were merged together, and like so many other deals done in the IT industry of late, the deal was financed with private equity capital.

XKO's software operations were acquired by Marlin Equity Partners, a private equity firm based in Los Angeles for an estimated $28 million back in October 2006. XKO was publicly traded in the United Kingdom, where it is located, on the AIM exchange. At the time, the software business portion of XKO generated about $36 million in sales for its fiscal 2006, which ended in March of that year. That business has about 1,000 customers today, who use its Windows-based ERP software.

CMS Software is a provider of ERP software for midrange companies, and it has a set of code that runs on the i5/OS and OS/400 platform, appropriately called CMS i5, and another newer set of code developed using C# and related .NET technologies for Windows platforms, called CMS m5. That Windows-based ERP suite was delivered in October 2004. CMS has stated in its company profile that it has over 2,500 customers; it is a privately held firm and, as such, has not divulged its annual revenue.

But Marlin Equity did say in its announcement that the combined firm would have some 1,400 customers and around $50 million in sales (that's U.S. dollars). This implies two things. One or both companies have overstated the number of customers they have--perhaps they were counting sites or licenses, not customers, which is a common "mistake" in the software racket. It also implies that XKO contributes about two-third of the merged company's sales and CMS Software contributes about one-third. The combined companies have 300 employees. Marlin Equity says the two entities will continue to operate under their own names, pending a review, and the private equity firm did not disclose how much it paid for CMS Software.

Rudy Joss, who was CMS Software's president, will chair the combined boards of directors of the two ERP software providers. Shawn McMorran, formerly chief executive officer at XKO, will continue in that role for the combined firms. It is unclear what role David McGovern, the managing director at Marlin Equity, will have in the company, but he cited scale as the main reason for doing the merger in the statement that the companies put out about the merger.


ERP Vendor Introduces New Windows-Based System to SMB Manufacturers

CMS Bites the Bullet and Overhauls ERP Suite

                     Post this story to
               Post this story to Digg
    Post this story to Slashdot

Sponsored By

                                                     ·Off-Site, Encrypted, Compressed
                                                     · Archived, Safe, Automated
                                                     · Instant Back-Up, 24x7 Recovery
                                                     · Starting at 100GB for less than $ 295 p/month

You will relax knowing your data on your System i
(and other platforms) is securely archived with VAULT400 -
knowing you saved a ton on your budget -
knowing you can recover at anytime.

Request a Pricing Proposal and / or
Sign Up for a Free On-Line Briefing at

Editor: Timothy Prickett Morgan
Contributing Editors: Dan Burger, Joe Hertvik, Brian Kelly, Shannon O'Donnell,
Mary Lou Roberts, Victor Rozek, Kevin Vandever, Hesh Wiener, Alex Woodie
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
Contact the Editors: To contact anyone on the IT Jungle Team
Go to our contacts page and send us a message.

Sponsored Links

COMMON:  Join us at the 2007 conference, April 29 May 3, in Anaheim, California
Vision Solutions:  The first new HA release from the newly merged Vision and iTera companies
LASERTEC USA:  Fully integrate MICR check printing with your existing application


IT Jungle Store Top Book Picks

The System i Pocket RPG & RPG IV Guide: List Price, $69.95
The iSeries Pocket Database Guide: List Price, $59.00
The iSeries Pocket Developers' Guide: List Price, $59.00
The iSeries Pocket SQL Guide: List Price, $59.00
The iSeries Pocket Query Guide: List Price, $49.00
The iSeries Pocket WebFacing Primer: List Price, $39.00
Migrating to WebSphere Express for iSeries: List Price, $49.00
iSeries Express Web Implementer's Guide: List Price, $59.00
Getting Started with WebSphere Development Studio for iSeries: List Price, $79.95
Getting Started With WebSphere Development Studio Client for iSeries: List Price, $89.00
Getting Started with WebSphere Express for iSeries: List Price, $49.00
WebFacing Application Design and Development Guide: List Price, $55.00
Can the AS/400 Survive IBM?: List Price, $49.00
The All-Everything Machine: List Price, $29.95
Chip Wars: List Price, $29.95


The Linux Beacon
Intel Shows Off Future Penryn and Nehalem Chip Designs

Cornerstones Laid for the Linux Foundation

Gartner Says It Was "All Over" the Virtualization Effect

Revenue Up, But Profits Take a Hit at Red Hat in Q4

Four Hundred Stuff
CYBRA Finds the 'Edge' for Native i5/OS RFID Software

Lakeview Adds More Autonomics to MIMIX

Thoughts on the Coexistence of Full Test Automation and Manual Testing

Help/Systems Boosts Graphics with Robot/NETWORK V10

Big Iron
IBM Replies To Platform: No More Compatibles

Top Mainframe Stories From Around the Web

Chats, Webinars, Seminars, Shows, and Other Happenings

Four Hundred Guru
FTP Means 'First Try Pinging'

Improving Upon WDSC's Table View

Admin Alert: Graphically Moving i5/OS Objects with OpsNav

System i PTF Guide
March 31, 2007: Volume 9, Number 13

March 24, 2007: Volume 9, Number 12

March 17, 2007: Volume 9, Number 11

March 10, 2007: Volume 9, Number 10

March 3, 2007: Volume 9, Number 9

February 24, 2007: Volume 9, Number 8

The Windows Observer
Microsoft Loosens the Licensing Screws for Vista Virtualization

Microsoft Patches Animated Cursor Flaw in Windows

XenSource Extends and Improves Windows Support with 3.2 Release

Intel Shows Off Future Penryn and Nehalem Chip Designs

The Unix Guardian
Sun Boosts Performance of UltraSparc-IV+ Chips

Intel Shows Off Future Penryn and Nehalem Chip Designs

IBM Offers Rebates on System p5 and ISV Software Bundles

The X Factor: Virtualization Belongs in the System, Not in the Software

Four Hundred Monitor
Four Hundred Monitor's
Full iSeries Events Calendar


Software Engineering of America
Profound Logic Software

Hello, New York? Buy IBM

Security Still an Issue in 2007 for System i5 Shops

A Trained IT Staff Is A Happy and Competitive One

As I See It: The Legacy

But Wait, There's More:

Is the Adoption Rate of Server Virtualization Technology Over Estimated? . . . ERP Vendors CMS Software and XKO Software to Merge . . . Goldman Sachs Says IT Spending Will Soften a Bit in 2007 . . . PHP-Based Mantis Help Desk Application Coming Soon to the System i . . . Zend Issues a PHP Innovation Challenge to i5/OS and OS/400 Shops . . . Complacency Will Get You Killed, Security Researcher Says . . .

The Four Hundred


Subscription Information:
You can unsubscribe, change your email address, or sign up for any of IT Jungle's free e-newsletters through our Web site at

Copyright © 1996-2008 Guild Companies, Inc. All Rights Reserved.
Guild Companies, Inc., 50 Park Terrace East, Suite 8F, New York, NY 10034

Privacy Statement