Bentley Systems is buying the Research Engineers International (REI) business and its STAAD product line from netGuru for US$23.5 million cash. (Thanks to Tracy Lenocker for noticing this item.) For the money, Bentley gets:
- The STAAD.Pro structural analysis and design product line.
- Software and product development.
- Customer support.
- Offices in Yorba Linda CA, Bristol UK, and Kolkata, India
- REI sales offices in Europe and Asia.
Why is the sale happening? netGuru needs the money to pay down its debt. Its net income has been negative, but is improving:
31-Mar-03: $10,529,000 loss
31-Mar-04: $ 3,110,000 loss
31-Mar-05: $ 788,000 loss
The company is hanging on to its eReview and ForReview collaborative software, and gets to share the REI offices with Bentley.
There is an ouch-clause: if the netGuru sharereholders don't approve, then the company has to pay Bentley $1 million in break-up fees. If the sale goes thru, Bentley reimburses netGuru up to $250,000 for legal and financial expenses.