Cleveland company buys Kyrus Corp.

Cleveland company buys Kyrus Corp.
Posted Tuesday, September 16, 2003 - 6:29 pm

By Rudolph Bell
BUSINESS WRITER
[email protected]

Agilysys Inc., a publicly traded company based in Cleveland, said Tuesday that
it has agreed to buy Kyrus Corp. of Taylors for $11.25 million in cash, plus
the assumption of $20 million in debt.
The sale, expected to close at the end of the month, was a planned
recapitalization, said Tim Roberson, Kyrus chairman and its biggest
shareholder. He said Kyrus went looking for a buyer.
"What we needed was significant financing to take the company to the next level
and that has been accomplished through this acquisition," Roberson said. He
said Agilysys "is absolutely the best partner possible for our customers and
our employees."
The 350-employee Kyrus sells IBM point-of-sale systems to major retailers,
including the Bi-Lo and Ingles grocery chains, as well as the Starbucks coffee
chain and Regal Cinemas theater chain, Roberson said.
Agilysys sells enterprise computer systems built with hardware and software
from IBM, Hewlett-Packard and Oracle. It has about 1,000 employees and annual
sales of $1.2 billion. Formerly called Pioneer-Standard Electronics, Agilysys
is publicly traded on the Nasdaq stock exchange under the symbol AGYS.
Martin Ellis, an executive vice president with Agilysys, said an integration
team is studying how to bring the companies together but hasn't decided what
changes, if any, to make.
"That will be worked at over the next few weeks," Ellis said. He said Agilysys
aims to increase Kyrus' business by bringing the "financial flexibility of a
public company."
Kyrus started in Kingsport, Tenn., in 1974 as Midsouth Cash Register Sales and
came to Greenville in 1980 with the purchase of CheckOut Systems, recalled
Roberson, who will retire as Kyrus chairman. The company's name changed to
Midsouth Data Systems in 1994 and to Kyrus in 1997, when Roberson and other
managers bought it in a leveraged buyout.
Kyrus revenues fell from $200 million in 2000 to the current $130 million — a
drop Roberson attributed to the effects of the Y2K scare, the Sept. 11
terrorist attacks and the general economic downturn. He said Kyrus did not lose
market share or major customers during that time.

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