GSE Systems of Columbia acquires Erudite Software Transaction is valued at $12.8 million in stock

May 24, 1996|By Mark Guidera | Mark Guidera,SUN STAFF

GSE Systems Inc., a Columbia-based company that develops and markets integrated enterprise software for the energy and manufacturing industries, has acquired Erudite Software & Consulting of Salt Lake City, Utah, for shares of new GSE stock valued at $12.8 million.

William E. Kuhlmann, GSE's chairman and chief executive officer, said his company acquired Erudite on Wednesday so that it could "enhance our presence in the emerging and increasingly important client/server market."

Erudite specializes in developing and marketing client/server technology for business applications.

Client/server systems allow computer users in an organization to access data from one or many locations away from the mainframe computer.

The company also has an extensive training program. It has 140 employees.

Privately held Erudite reported sales of $10.8 million and earnings of $186,000 in 1995.

The company, founded in 1990, said it had revenues of $3.8 million and earnings of $231,000 during the first quarter of this year.

Erudite said those numbers represented a 77 percent increase in sales and a 541 percent increase in earnings over the same period a year ago.

GSE, which designs and supplies high-fidelity simulation software and systems for nuclear power and fossil fuel plants, and other energy and manufacturing industries, expects the acquisition to broaden its ability to offer integrated solutions to its customers.

GSE conducts business worldwide and reported 1995 earnings of $3.5 million on $85.3 million in revenues.

It purchased the Utah company by issuing 840,700 shares of new common stock to Erudite Software's shareholders.

Pub Date: 5/24/96

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