London-based Brady plc, a software firm that provides trading, risk management and settlement solutions to the energy, metals and soft commodities sectors, has announced an agreement to acquire Systems Alternatives International LLC (SAI), a Maumee, Ohio-based software provider to the metal recycling industry.
According to Brady, the acquisition has been designed to complement its organic growth by enhancing its product offerings and customer base. Brady’s directors say they believe there is a strong opportunity to continue to consolidate the energy, metals and commodity software markets. The acquisition of SAI will be a key step in developing Brady’s metals business and further assist in reaching overall critical mass and scale, according to the company.
SAI provides a multinational, multilocation solution for the recycling market. The company’s product is aimed primarily at processors, brokers, exporters and consumers in the ferrous, nonferrous, stainless and special steel alloy market sectors and, to a lesser extent, to the precious metals and paper market sectors.
SAI also recently launched a solution designed to handle supply chain management of steel mills, which serves both integrated and nonintegrated mills.
SAI has a significant presence in the scrap metal business, with six of the 10 largest U.S. scrap metal recyclers using the company’s software, Brady executives say. As a number of Brady's existing clients are recyclers, the company will have the opportunity to cross market SAI’s services.
The acquisition of SAI extends Brady’s product coverage with the addition of an end-to-end solution from scrap yard transactions to accounting for supply-chain management, profit margin analysis and forecasting for recycling organizations in the ferrous, nonferrous, paper and steel sectors.
Brady’s directors say the acquisition will strengthen its brand and commercial presence in the Americas, complementing its presence in mainland Europe and its smaller but growing presence in the Americas and Asia.
Commenting on the acquisition, Gavin Lavelle, CEO of Brady, says, "SAI is a market leader in recycling software, which is highly complementary to our existing market leading concentrates, refined and financial metals trading business and also provides both product and domain knowledge along with people skills, as we expand our presence in the North American markets.”
He adds, “This acquisition further strengthens our product offering to the market by complementing our existing financial and risk management capabilities and provides new cross-selling and other growth opportunities."
John Underwood, CEO of SAI, says, "I am delighted to have the opportunity of integrating SAI into Brady plc, where our employees and customers will benefit from a well-capitalized publically listed company with a worldwide network that will provide us with a platform for further global expansion and increased resources to facilitate further initiatives and opportunities. We are looking forward to contributing further to Brady's impressive growth and we are confident that our customers will quickly gain the advantages of Brady's expertise in complementary areas such as hedging and exchange coverage of the LME (London Metal Exchange) and Comex (Chicago Mercantile Exchange)."