Agilysys Acquires Kyrus, Becomes Biggest Supplier Of IBM Retail Solutions

Executives at Cleveland-based Agilysys first said in mid-September that it would acquire Kyrus, a Greenville, S.C.-based provider of retail point-of sale solutions based on IBM technology to supermarkets, drug stores, retail operations and hospitality companies.

Kyrus, like Agilysys, has a distribution, solution provider and services business model, and is a major partner of IBM, said Martin Ellis, executive vice president of corporate development at Agilysys.

However, the two have almost no overlap in terms of customer base and solutions, said Ellis. Instead, the acquisition of Kyrus brings Agilysys into a new market, he said. "When you put us together, in the retail industry, we can now offer from enterprise solutions all the way to POS solutions," he said. "And it gives our partners new opportunities for their products."

The acquisition makes Agilysys the leading provider of IBM retail solutions and services, Ellis said.

Since the acquisition was just completed Wednesday, and the integration of the two companies is still under way, Ellis was unable to discuss the post-merger head count. He also said he is unsure as to what might happen to the Kyrus name. "We are looking at how to take it forward," he said. "It has a strong reputation in the retail space."

Agilysys itself was formed out of a decision by Pioneer-Standard Electronics in January to sell its electronic component division to Arrow Electronics for about $240 million in cash and $25 million in inventory returned to vendors. The name change to Agilysys was first unveiled in mid-August and finalized on Sept. 15.