Re: Anyone have thoughts on impending purchase of JBA by GEAC?

GEAC made the formal offer the week before last.  As far as I am aware it
was at 250p and it will be approved.  For me personally, that was fine as I
bought shares at 89p.

JBA has already been "cleaning house".  10% of the development staff in the
UK were cut loose 6 weeks ago.  Out here in California, JBA just cut approx.
20% of it's staff across all departments.  Then they immediately started
hiring technical staff as replacements.  The upper management has been
changing in a very regular basis (3-6 months).  But generally it looks like
business as usual (whether that is good or bad is a completely different
matter).

Who the hell knows what GEAC will do.  But I bet we don't hear any plans in
the near future.  I would hope they are committed to the support of existing
customers and products, and hopefully speed up the release of the new
version.  Only time will tell but I am betting that things in JBA (sales,
shareprices, support) will get better...forever the eternal optimist.

I hope they do not bring the development to North America.  That would be a
mistake in my opinion.  Of course it would be great for American companies
but what about the rest of the world.  How many people in America know the
intricacies of Pan-European trade, multi-currency and accounting laws.  You
say the product has been coded in a vacuum.  I know from personal experience
(I was JBA's Financials Product Development Manager) that is just not true.
Just because they do not put something in the product doesn't mean they
didn't listen, it just means they perceived other requests as a priority.
Not every company can get exactly what the require in the standard product,
it would just be to big a cumbersome.  As you say, the BIG guys requests are
listened to much more, isn't that just a fact of life.  They spend more
money, they have more "clout".

Anyway, just my own personal thought and opinions.

Regards,

Mark.

----- Original Message -----
From: Randy Smith <Randy_Smith@omron.com>
To: <JBAUSERS-L@midrange.com>
Sent: Tuesday, August 17, 1999 1:03 PM
Subject: Re: Anyone have thoughts on impending purchase of JBA by GEAC?


>
>
> There were comments that Ken Briddon, Chief Executive of JBA, had
previously
> worked for GEAC.  It's unlikely that other parties are interested in
acquiring
> JBA, so the little spat some of the stockholders put up, which delayed the
> decision for six weeks, will probably end quietly.  Many people that had
> purchased JBA stock at much higher than the share price of 250p can't be
that
> happy, but there are no other options, GEAC isn't going to sweeten the
offer.
>
> In my opinion, in the long term, the acquisition will benefit both parties
and
> hopefully the stockholders as well.  As far as most customers who bought
the
> software . . . hard to tell.  JBA or GEAC has made no attempt that I know
of to
> address the customer base of either company.  (Is JBA maybe listening to
this??)
> Based on either website (www.geac.com, www.jbaworld.com) you will not find
> anything helpful to the installed base.  GEAC's website has more recent
news
> than JBA's.
>
> JBA may (and I hear is) use the opportunity to clean house, sure to be
> uncertainty among the ranks.  If GEAC dismantles the upper management
structure
> of JBA, (Good I think) then what to do with the product development?  I
had
> heard just maybe (we are talking unsubstantiated rumor here) GEAC might
bring
> over the development of the product to North America.  I can't imagine how
> destabilizing it would be the product (actually many products because of
> verticals), but necessary.  Too long has the product been coded in an
artificial
> vacuum.  A minuscule fraction of user group influence aside,  when have
> customers (other than BIG ones) had any direct feedback into the
development
> cycle?  When would (if ever) version 4.0, components, etc. come out?  What
is
> GEAC's commitment to JBA products, brands, etc.  What about the whole
> implementation infrastructure (although how many recent sales have there
been?),
> customer service/support organization?  What about all the companies JBA
has
> acquired, third party relationships, etc.?
>
> Somebody ought to be talking soon.  I'm sure when asked now, the response
might
> be, "The acquisition hasn't happened yet, this discussion is premature".
I
> don't think so, why does GEAC want to buy JBA?  What are their intentions,
at
> least publicly.  All I got out of the web sites were that each is
complimentary
> to the other, no real overlap, one augments the other.  Sounds great.
What
> about the future? Business as usual with a new parent company, or
something
> else?
>
> Sorry, I digress.  In summary, I think long term is good for the companies
> involved, short term will have negative effects on software support,
investments
> in product improvements will probably be somewhat on hold, the layoffs in
JBA
> North America aren't going to help users,  expect general service level to
fall
> for a little while.
>
> Randy Smith
> OMRON Electronics, Inc.
>
>
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