Agilysys to remain independent, names new chairman, CEO

By Lisa Kerner

Charlotte, N.C., Oct. 22 - Agilysys, Inc. completed its five-month review of strategic alternatives in conjunction with JPMorgan.

The company concluded that it will remain independent, realign its cost and overhead structure and drive value creation, according to an Agilysys news release.

"Given the current turmoil in financial and capital markets, the lack of viable strategic and financial buyers, and the sluggish environment for IT capital spending, the board and its advisers determined that there is not a meaningful opportunity to monetize intrinsic value through the sale of all or part of the company at this time," Thomas A. Commes, co-chair of a special committee of the board, said in the release.

It was also announced that Arthur Rhein is retiring as president and chief executive officer and stepping down as chairman and as a company director, effective immediately.

Agilysys' board appointed director Keith M. Kolerus as non-executive chairman to replace Rhein.

Martin F. Ellis, executive vice president, treasurer and chief financial officer, has been appointed as president and CEO of the company and elected to the board.

Agilysys, an IT solutions provider, said it has eliminated $17 million of expenses as the result of cost-reduction initiatives and will save more by consolidating its headquarters from Boca Raton, Fla., to its existing offices in suburban Cleveland.

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