COOKEVILLE – A rapidly growing Cookeville-based software provider was recently acquired by its largest competitor.
TCS Technologies, which just last year moved into a newly renovated office space at 3313 Williams Enterprise Drive, was bought by ARI Network Services Inc. in October. TCS is a provider of software, websites and digital marketing services designed exclusively for dealers, wholesalers, retreaders and manufacturers within the automotive tire and wheel market.
Terms of the transaction were not disclosed, but local company executives likened the move to a merger. TCS will maintain its moniker as well as continue its normal operations out of its Cookeville headquarters under the continued leadership of Barry D. Reese, who will assume the role of VP and GM of TCS Technologies, an ARI company.
“(ARI) intends on leaving the Cookeville office as is, every single employee was retained, and we are actively recruiting and hiring and growing at a rapid pace,” Reese told the UCBJ. “That’s very good for Cookeville. We’ve also been collaborating with them very quickly to mesh our strengths to deliver better, faster products.”
Reese said the acquisition was set in motion about two years ago when ARI purchased 50 Below, an e-commerce website provider in the automotive tire and wheel aftermarket industry, from bankruptcy. ARI was looking to continue to grow its tire and automotive customer base, officials said, and besides being its strongest competitor, TCS was a good fit for a variety of reasons.
TCS Technologies delivers solutions and support to the automotive tire and wheel market such as retail websites, point-of- sale software, business-to-business online ordering sites and more. More than 20,000 automotive tire and wheel dealers depend on TCS’s websites and software tools.
“All of TCS’s offerings are in alignment with ARI’s mission,” Roy W. Olivier, president and CEO of ARI, said in a release. “(The deal) consolidates our position as the leading provider of ecommerce-enabled websites and digital marketing services in the automotive tire and wheel industry.
“Second, TCS provides solutions for the entire automotive tire and wheel supply chain, including wholesalers, retreaders and manufacturers. Finally, TCS offers a point of sale solution for tire and wheel dealers as well as for auto repair shops. We believe the combined entity will accelerate our growth and leadership position in this market for the foreseeable future.”
TCS has 49 employees at its Cookeville office and another 20 based in Salt Lake City and more. Reese said they plan to add another 10-plus employees in Putnam County post-acquisition.
ARI officials expect the TCS acquisition to generate incremental revenue of approximately $5 million and be accretive to EBITDA for fiscal 2015.