GERS, Ecometry Form Escalate Retail

GERS Retail Systems and Ecometry Corp. have joined their organizations to form Escalate Retail, a software vendor offering solutions from planning and POS to customer call center management.

The merger transaction was financed by Golden Gate Capital, which already had a financial interest in Ecometry.

San Diego-based GERS was known as a leading provider of planning, merchandising and supplier collaboration software, while Delray Beach, FL-based Ecometry was recognized for its customer-interaction, e-tail and loyalty solutions. Their merged front- and back-office solutions will address what Escalate described as "the third dimension of retail," or the use of customer intelligence for more profitable merchandise planning and decision-making.

The combined companies, which will keep dual headquarters in San Diego and Delray Beach, expect the first phase of their systems' data integration to be completed by the end of the year. At that time, Escalate Retail also is expected to announce its 2007 software release schedule.

Escalate Retail has more than 650 clients, including apparel retailers such as Hot Topic, Nordstrom, Brooks Brothers, Blue Fly, Louis Vuitton, Harry Rosen, Saks, Casual Male and bebe.

Escalate reported that market analysts see significant growth potential for a combined solution suite such as that created by the merger because retailers want choices other than monolithic ERP applications and isolated point solutions. The company also said that no other IT vendor has made customer intelligence technology available across all customer touch points and in back-office merchandise and planning applications.

"We are excited about our ability to bring integrated and customer-focused solutions to the industry," said Stewart M. Bloom, CEO of Escalate Retail and former president and CEO of GERS.

Likewise, John Marrah, president of Escalate and former president and CEO of Ecometry, said: "After analyzing the opportunities in the market for over a year, we are very excited to join forces with GERS. We are both committed to the goal of delivering highly extensible retail solutions that can be delivered individually or as a comprehensive suite."

Golden Gate Capital has been involved in a number of apparel marketplace transactions in recent years, including deals related to both software firms, such as Infor, and apparel retailers, such as Draper's and Damon's.

For more information: www.escalateretail.com