Stonebridge Technology Associates Advises Retail Expert, Inc. On Sale to Tyco Fire & Security

January 9, 2007 - Stonebridge Technology Associates (“Stonebridge”) announced today that it acted as exclusive sell-side advisor to Retail Expert, Inc., a provider of data analytics software to the retail industry, in its sale to Tyco Fire & Security, a subsidiary of Tyco International, Ltd.  (NYSE: TYC).

Client Background

Based in Woburn, MA, Retail Expert is a leading provider of performance management enterprise software applications that enable retailers to track, measure, manage and improve store operational performance in the areas of loss prevention, sales audit, operations, freight, refund management and inventory control.  The Company’s integrated suite of business intelligence applications utilize data captured by retailers’ point-of-sale (POS) and other transaction systems to monitor store performance based on a series of key performance indicators.  The Company’s customers include a variety of Tier I retailers including Kohl's, Food Lion, Price Chopper, Penn Traffic, CVS/Pharmacy, Rite Aid Corporation, Linens'n Things, Marshalls, TJ Maxx, Burlington Coat Factory and Toys R Us, among others.

Stonebridge Role

Retail Expert engaged Stonebridge to manage a preemptive sale process after the Company had been approached by a prospective buyer.  Stonebridge assisted the Company in evaluating its strategic partner options, preparing the Company for sale and positioning the Company in a way that highlighted its strategic value. Stonebridge provided Retail Expert with day-to-day, senior-level attention that proved critical in negotiating favorable purchase and sale agreement terms and in successfully managing a sale process that ultimately produced a significantly higher valuation from a competing strategic partner. 

Transaction Rationale

Tyco Fire & Security, with over $11 billion in annual sales and over 90,000 employees, is one of three major business units of Tyco International, Ltd. Tyco acquired Retail Expert for approximately $14 million in cash to further strengthen and broaden its existing retail loss prevention and management offerings.  Tyco Fire & Security has been a leader in retail loss prevention and management technology for many years, with more than 80 percent of the top 100 retailers worldwide using their products.  The addition of Retail Expert’s business intelligence software applications will allow Tyco to offer a comprehensive retail management solution that bridges the gap between security and information system technologies. 

About Stonebridge Technology Associates

Stonebridge Technology Associates, a division of Stonebridge Associates, LLC, specializes in providing merger and acquisition advisory and capital raising services to software, hardware, Internet, healthcare, and other technology product and service companies. Stonebridge Associates, LLC is a FINRA-registered investment banking firm that provides creative solutions to middle market and emerging growth companies in mergers and acquisitions, private placements of debt and equity securities, fairness opinions, and other strategic and financial advisory assignments. To learn more about Stonebridge, please visit our website at www.stonebrtech.com.