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BTS Group, the leading global provider of simulations for business strategy implementation, announced on February 14th that it had signed a contract to acquire the Learning Solutions assets of Strategic Management Group, Inc., which is based in Philadelphia, Pennsylvania. SMG had been a major US competitor to BTS.
Through the acquisition, BTS has taken over client contracts, personnel, products, solutions, and intellectual property associated with Learning Solutions, as well as the Strategic Management Group, Inc. name and SMGINC.com web domain.
Learning Solutions had represented 90% of SMG's business prior to the acquisition. Learning Solutions offers business acumen simulations and specializes in best practices scenario-driven business simulations within leadership, project leadership and sales. SMG will provide BTS with new products and solutions, as well as clients and qualified personnel.
SMG has been in business for 25 years and had revenues last year of approximately $8 million. The new Strategic Management Group, Inc. will comprise approximately 40 full-time employees.
"SMG has a strong brand, high quality products and solutions, qualified personnel and large and reputable clients. Our goal is to increase productivity and extend our positive BTS culture and efficient work processes to the company, thereby improving profitability," said Henrik Ekelund, CEO and President, BTS Group AB. BTS has also strengthened SMG's leadership by providing key personnel, including Rommin Adl, formerly Senior Vice President at BTS USA Inc., who has taken on the role of President and Chief Executive Officer for the new company.
BTS has made this acquisition for four key reasons:
1. SMG's business aligns well with the BTS core business, and BTS expects that SMG's Learning Solutions can be run with higher productivity and lower costs.
2. SMG's Learning Solutions has outstanding products, especially the scenario-based business simulations that complement the BTS product portfolio very well. These new products can be offered to BTS clients.
3. SMG's clients include a number of Fortune 500 companies. This will expand the BTS client base and provide BTS with opportunities to offer its products and solutions to new client segments. Through this acquisition BTS will also add partners in markets such as Russia and Singapore.
4. Both companies' target audience groups are complementary, as BTS delivers programs primarily to the executive management level, while SMG has focused more on middle and first line management.
The acquired assets will comprise the new SMG, which will remain a separate company in Philadelphia and work under the brand SMG.
BTS will not take over accounts receivable, assume past liabilities or written guarantees in connection with acquiring the company. The acquisition will be completely paid for with BTS funds.
The acquisition is estimated to increase earnings per share in BTS during 2005.
This is a translation of the Swedish original
For further information please contact:
Rommin Adl, President and CEO of Strategic Management Group, Inc.
Tel: (203) 943-4800
Christian Ankarcrona, Investor Relations, tel: + 46 8 58 70 70 00
Homepage; www.bts.com
BTS Group AB is an international training and consultancy company in the field of business acumen. BTS uses tailor-made business simulations to support company managers in implementing change and improving profitability. BTS trains the entire organization to analyze and to make decisions centered on the factors that promote growth and profitability. This generates increased emphasis on profitability and market focus, and supports day-to-day decision-making, which in turn leads to tangible, sustainable improvements in profits. BTS customers are often multinational companies. In 2004, BTS generated revenues of SEK 206 million and prior to the acquisition had 107 employees. BTS has been listed on the Stockholm Stock Exchange since 2001.
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