John McCue to stay at McCue Systems by Christopher Menkin
John McCue
McCue Systems Inc., Burlingame, California, the “granddaddy” of the equipment leasing software companies founded in 1973 by John McCue, has been purchased for approximately $8.5 million by NetSol Technologies, Inc. (NASDAQ:NTWK), a US-based developer of proprietary software applications and provider of information technology (IT) services, headquartered in Calabasas, California. Payment will consist of 50 percent cash with the balance paid through the issuance of Netsol's common stock carrying Rule 144 restrictions. Najeeb Ghauri, Chairman of the Board of Directors of NetSol Technologies Inc, told Leasing News his ten-year-old company has 515 employees worldwide. He met McCue Systems founder John McCue through the Equipment Leasing Association, they became friends, and February 24th entered into an agreement for shared services that grew into an opportunity for both companies to expand.
Najeeb Ghauri “This is an expansion into our international niche, and fits our core company beautifully," Ghauri explained. "And John McCue will remain as head of the wholly-owned subsidiary. He is invaluable as its president and for his involvement in the industry." Also, McCue Systems' 66 employees will remain, as will the company's Burlingame office. "We didn't buy the company to downsize it," Ghauri added. NetSol has reported six consecutive quarters of revenue growth and profitability, with net revenue of $9 million for the first six months of fiscal 2006, an 88 percent increase over the comparable period. Management has provided revenue guidance of $19 million to $20 million for fiscal 2006 ending June 30, 2006. McCue Systems reported revenue of approximately $5.6 million with net profit of approximately $655,000 for fiscal 2005 ended December 31, 2005. "We don't want to be as big or even another Oracle," NetSol Chairman Ghauri said. ”Our product development and technology expertise will be greatly enhanced by McCue's mature delivery and U.S. support infrastructure. Now NetSol is positioned to compete with larger, less niche-focused software providers such as Oracle and SAP. We believe this agreement is the first aggressive step toward considerable growth in the U.S. marketplace.” The terms of the transaction will be disclosed in the Company's Form 8-K filed with the Securities and Exchange Commission. Maxim Group, LLC, a full service investment banking firm headquartered in New York City , provided acquisition negotiation and advisory services From a NetSol Press Release: ### Press Release #################### About McCue Systems With over 30 years of experience in developing business solutions for the equipment and vehicle leasing industry, McCue Systems Inc. is the leading provider of lease/loan portfolio management software for banks, leasing companies and manufacturers. Its flagship product, LeasePak, simplifies lease/loan administration and asset management by accurately tracking leases, loans and equipment from origination through end-of-term and disposition. McCue Systems leads the leasing technology industry in the development of Web-enabled and Web-based tools to deliver superior customer service, reduce operating costs, streamline the lease management lifecycle, and support collaboration with origination channel and asset partners. Alone in the industry, McCue Systems offers a Web-based front-end system that integrates fully with the system's back-office database architecture. By harnessing the most advanced technologies, McCue Systems can offer the right operating platform for almost any enterprise. LeasePak can be configured to run on HP-UX, SUN/Solaris or Linux, as well as for Oracle and Sybase users. And for unmatched scalability, McCue Systems offers the LeasePak Bronze, Silver and Gold Editions for systems and portfolios of virtually all sizes and complexities. McCue Systems' solutions set the industry standard for reliability, providing the equipment and vehicle leasing infrastructure at leading Fortune 500 banks and manufacturers, as well as for the industry's leading independent lessors, including Cisco, Hyundai, JP Morgan/Chase, ORIX, and Volkswagen Credit. The leasing experts at McCue Systems work closely with lessors to put the company's leasing expertise to work to streamline lease operations and enhance customer retention at every stage of the lease lifecycle. For more information, visit www.mccue.com . About NetSol Technologies, Inc. NetSol Technologies is an end-to-end solution provider for the lease and finance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the U.S. , Europe, East Asia and Asia Pacific. NetSol helps its clients identify, evaluate and implement technology solutions to meet their most critical business challenges and maximize their bottom line. By utilizing its worldwide resources, NetSol delivers high-quality, cost-effective IT services ranging from consulting and application development to systems integration and outsourcing. NetSol's commitment to quality is demonstrated by its achievement of both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 4 assessment. For more information, visit NetSol Technologies' web site at www.netsoltek.com.
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