DIVESTITURE AND RESTRUCTURING

Challenge:
In 2003, Agilysys embarked on a staged, multi-year strategic transformation to focus exclusively on becoming a leading provider of information technology solutions.  At that time, it divested approximately half of its business, explaining to investors, customers, suppliers and employees that the strategic plan required the company to “get smaller to get bigger.”  Over the next few years, management worked tirelessly to reposition the company while aggressively growing the business and substantially improving its financial strength. 

In January 2007, Agilysys management prepared to complete its transformation by divesting two-thirds of its remaining business, further leveraging a well-conceived plan to accelerate organic and acquisition growth in higher-margin and rapidly evolving market sectors. Once again they would need to convince key stakeholders that their plan to “get smaller to get bigger” would prove successful.

Solution:
As in 2003, Agilysys partnered with Dix & Eaton to develop and execute a communication plan to announce the divestiture and the company’s new growth objectives.  The 2007 plan enabled the company to effectively communicate details of the transaction and growth strategy to stakeholders through a variety of deliverables, including a news release, micro-Web site, 30-page company profile brochure, investor fact sheet, investor presentations, marketing collateral, employee webcasts, messaging materials, media interviews, active outreach to key publications, and more.

Results:
Thoughtful messaging was accurately captured in favorable media coverage and reflected in positive response by investors and analysts who saw this capstone corporate repositioning transaction as a savvy strategic move – as indicated by a 22 percent jump in Agilysys’ stock on the first day of trading following the announcement of the divestiture.  The company also retained key personnel and maintained critical customer and supplier relationships while developing an impressive shareholder value creation record of a 152 percent increase in Agilysys stock since 2003.