The transaction is expected to have a positive impact on revenue and earnings for Optimation Technology by adding an additional vertical market to those presently supported by the firm. The acquisition of Klug fits well with Optimation Technology's growth strategy, which includes growth in diverse vertical markets. Optimation Technology presently has six branches offices located in New York state and North Carolina.
Klug Systems Co. has 47 years of experience providing services to clients in the glass industry, and has brought their specialized knowledge and client relationships to Optimation Technology. This acquisition will benefit both firms by allowing each to refer clients and project work to the other. Operational and administrative costs have been reduced through the elimination of duplicated functions that were formerly performed by each company independently. On December 14, 2001 when the two firms signed a letter of intent, Optimation Technology's President Bill Pollock stated, "We are excited to be able to include them as part of Optimation Technology. We have not been strong in the glass industry and having Klug on board will allow us to provide solutions to a new set of vertical-market customers. At the same time, Klug Systems President Bruce Bowen commented, "The combination of Klug Systems' talented engineering staff with Optimation's would be very positive. The firms are a natural fit and belong together. We are excited to be joining forces with Optimation and their forward-looking operation. They were the first engineering firm in New York State to be registered ISO-9001." Klug Systems LLC is now a wholly owned subsidiary of Optimation Technology.
Optimation Technology and its subsidiaries realize that the key to a successful and growing service organization is the quality of the company's work processes. Consistent results can only be achieved through a rigorous process definition and improvement system. To further these ends, Optimation Technology has implemented a documented quality management system and works to continually improve its effectiveness. The firm's processes meet the benchmarks for both ISO 9001 and the Control System Integrators Association (CSIA). Optimation Technology has been registered ISO 9001 since 1994 and became a registered CSIA member in 2001. CSIA is the largest organization in North America for independent control system integrators.