With the acquisition, AFS said it now serves more than 230 customers, will employ over 100 professionals, and will be headquartered here, with an East Coast office in Milford, CT, and a development facility in Bangalore, India.
AFS also announced today that it had closed a $5 million financing arrangement, comprised of mezzanine and equity capital, provided by Merion Investment Partners, L.P., a King of Prussia, PA-based mezzanine capital firm. A portion of the proceeds was used to facilitate the acquisition of DMS, and the remaining will be used for working capital purposes and possible further acquisitions. The Argentum Group, a New York-based private equity firm, and AFS's majority shareholder, played an integral role in facilitating these transactions.
"This is a great merger of two Wholesale Food Distribution software companies. We now can provide complete end-to-end solutions for both distributors and manufacturers using the latest .NET platform," observed Michael E. Warren, formerly with DMS who is now with AFS.
"I am very pleased with the acquisition of DMS as both companies complement each other well, in that AFS brings a substantial capital investment in the development of its .NET framework and DMS's management brings deep domain expertise in market segments that are new to AFS. Thus, DMS's customers will be offered broader product offerings on a leading edge technology platform, and more process oriented product development and customer support, ensuring high quality deployments," said Kurien Jacob, AFS's ceo. "AFS now offers to the food and beverage industries the only solution that provides a complete suite of fully integrated software applications, utilizing a database independent design and a Service Oriented Architecture."