Integrating, consolidating and upgrading technology systems of newly acquired companies

CHALLENGE:
After a National manufacturer of production automation systems acquired a competitive manufacturing company, their goal was to integrate ERP systems and consolidate their data centers. However, the acquired company was running an incompatible ERP system and required significant upgrades immediately to support migration period goal of 18 -24 months. Budget restraints made costs associated with parallel operations prohibitive.

SOLUTION:
LEASENET structured a step-lease, incorporating the purchase of the system upgrades along with the buyout of the acquired company's current lease, which had 16 months remaining with another Lessor. For the first 16 months of the new lease, LEASENET structured the new payment to mirror the old payment that the acquired company had been making to the original Lessor. After the 16th month, the lease payment was set to new budget targets for the remaining term of the lease. In addition, at the end of the lease term, the customer had the option to extend the lease for an additional 12 months at a pre-negotiated rate.

RESULT:
The customer successfully integrated and consolidated application systems and data centers with those of its newly acquired company. And through the consolidation process, they were able to avoid the expense of running two different systems in parallel.

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