Campus Pipeline, a Salt Lake-based software company serving colleges and universities, announced Tuesday it will be acquired by Systems & Computer Technology Corp. for $42 million in cash.
The acquisition, which has already been approved by the boards of directors at both companies, includes the $42 million, subject to adjustment based upon an expected $15 million in cash on Campus Pipeline's balance sheet. SCT also agreed to handle the rationalization costs and transaction fees, which should not exceed $4 million.
The two companies have supported one another for years and worked in concert to provide software and services to colleges and universities, said Andy Cooley, Campus Pipeline's senior vice president of marketing and product development. Bringing them together seemed a logical, mutually-beneficial combination.
"It's a complimentary combination," Cooley said. "The reason it's complimentary and the reason we've had such a strong partnership is that SCT provides the technology for our ERP, the enterprise resource planning systems we use in our technologies. Campus Pipeline doesn't provide those systems or that functionality.
"Campus Pipeline provides the platform that connects those systems together — library systems and parking systems and so on — and provides interoperability between them. Our system and their system are quite complimentary. What this means for both companies is that the leader in ERP and the leader in Web platform and portals are coming together to form one powerhouse company."
Eric Haskell, SCT's chief financial officer, agreed.
"We began our investment with Campus Pipeline in December of 1999, and we've watched them grow very closely aligned with us," Haskell said. "This really puts us forth as the leader in e-infrastructure. It will be a tight integration with our products, and we think it will be the platform for all of higher education for the e-environment."
Campus Pipeline serves more than 200 colleges and universities worldwide, providing enterprise software and services to integrate the institution's technology, information, services and communities. SCT develops and markets the student information systems that help the institutions run.
The transaction is expected to close within 15 days, pending notification of shareholders and other regulatory approvals. Campus Pipeline will then relinquish its name, but will continue to operate out of its offices in Salt Lake City, according to the company's chief operating officer, Darin Gilson.
Following the acquisition, Campus Pipeline chairman and chief executive officer, Tom Lewis, will leave the company. Other management and employee changes are expected, Gilson said, though he expects SCT will preserve as many jobs as possible.
"Whenever you have a transaction of this nature, there are typically some efficiencies as well as some redundancies," Gilson said. "We anticipate that that will occur. But SCT has demonstrated a commitment to a methodical and detailed approach to it. We're expecting that a key part of what they're acquiring is our talent base."
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