| QAD Inc. | |
| Type: | Private |
| Industry: | Computer software |
| Owner: | Thoma Bravo |
| Foundation: | Carpinteria, California (1979) |
| Location: | Santa Barbara, California |
| Key People: | Pamela Lopker (President), Anton Chilton (CEO) |
| Products: | ERP, QAD Adaptive Applications, QAD Adaptive ERP |
| Num Employees: | 1,950+ (June, 2019) |
| Homepage: | qad.com |
QAD Inc. is a software company that provides enterprise resource planning (ERP) software and related enterprise software to manufacturing companies. The company has customers in over 100 countries around the world.[1]
On June 28, 2021, it was announced that Thoma Bravo would acquire QAD Inc. in an all-cash transaction with an equity value of approximately 2 billion.[2]
QAD was founded in 1979 by Pamela Lopker, who serves as president. QAD initially developed proprietary software applications for manufacturing companies in Southern California.
In 1984, QAD announced MFG/PRO, which was built using Progress Software Corporation's Fourth Generation Language (4GL) and relational database. MFG/PRO was one of the first software applications built for manufacturers following the APICS principles. MFG/PRO was also one of the first applications to support closed-loop Manufacturing Resource Planning (MRP II), as well as operation in open systems. QAD software supports lean manufacturing principles and interoperates with other systems via open standards. QAD stock began trading as of its initial public offering (IPO) on August 6, 1997.[3]
In 2003, a product called Supply Visualization (since rebranded to Supplier Portal) was first hosted in a multi-tenant configuration for QAD customers and those customers' suppliers, establishing QAD as a player in providing Software-as-a-Service (SaaS) software for manufacturers. QAD Supplier Portal continues to allow customers and their authorized suppliers to share information about inventory, scheduling, purchase orders, shipments, Kanbans and more. In 2006, QAD announced a user interface called .NET UI, and in 2007 its core product suite name was changed from MFG/PRO to QAD Enterprise Applications. QAD began their cloud apps in 2003, and in 2011 officially launched QAD On Demand, which was later named QAD Cloud ERP.
In 2015, the QAD Cloud ERP software was enhanced further when the Channel Islands User Experience (UX) initiative was launched in phases, named after the Channel Islands off the coast of Santa Barbara, California. In 2017, the QAD Enterprise Platform was released as a way to deliver functionality to users utilizing the Channel Islands UX in QAD Cloud ERP. In 2019, QAD renamed its software portfolio to QAD Adaptive Applications. In addition, QAD's flagship ERP software was renamed QAD Adaptive ERP, which features the Adaptive UX and is built on the QAD Enterprise Platform.
QAD sells its products and services to companies in six main manufacturing industries: automotive, consumer products, high technology, food and beverage, industrial equipment and life sciences. The company's software portfolio is called QAD Adaptive Applications, which is headlined by QAD Adaptive ERP. QAD Adaptive Applications is designed to streamline the management of manufacturing operations, supply chains, financials, customers, technology and business performance.[4] QAD Adaptive ERP is marketed as SaaS software using cloud computing.
On June 28, 2021, QAD announced[16] that it has entered into a definitive agreement to be acquired by Thoma Bravo, a private equity investment firm focused on the software and technology-enabled services sector, in an all-cash transaction with an equity value of approximately 2 billion. Under the terms of the agreement, QAD shareholders will receive $87.50 per share of Class A Common Stock or Class B Common Stock in cash.
Upon completion of the transaction, QAD will become a private company to continue investing in the development and deployment of Enterprise Resource Planning (ERP) software and related enterprise software for manufacturing companies around the world. Anton Chilton will continue to lead QAD as CEO, and the company will maintain its headquarters in Santa Barbara, California.
The QAD Board of Directors formed a special committee composed entirely of independent directors to conduct a robust process and negotiate the transaction with the assistance of independent financial and legal advisors. Following the special committee's unanimous recommendation, members of the QAD Board other than Mrs. Lopker, who recused herself, unanimously approved the merger agreement with Thoma Bravo, and recommend that QAD shareholders adopt and approve the merger agreement and the transaction. Other QAD shareholders filed a lawsuit concerning the merger, seeking millions of dollars in damages from Mrs. Lopker and other defendants, which is scheduled for trial in the Delaware Court of Chancery in October 2023.[17]
The acquisition of QAD by Thoma Bravo was completed in early November 2021.[18] Following the completion of the transaction, Mrs. Lopker intends to retain a significant ownership interest in the company and will continue serving the QAD Board.