Manufacturing software maker IQMS Inc. announced Aug. 4 that its private equity investors have put another $40 million into the company and that longtime CEO Randall Flamm is stepping down from the company's top executive job to be replaced by another software industry veteran.
The Paso Robles, Calif.-based company said Flamm would become chief product officer and remain chairman while Gary Nemmers, former senior vice president and general manager of HighJump Software Inc., will be tapped as the new CEO.
IQMS said the additional $40 million investment from its private equity funders, Technology Crossover Ventures and Banneker Partners, aims to position the company for growth and “an extended leadership position in the ERP market.”
A recent filing at the Securities and Exchange Commission noted that Randall and Nancy Flamm, who founded IQMS in 1989, were being paid close to $40 million by IQMS.
The July 23 SEC filing said the company had raised an additional $39.4 million and that $38.6 million of that was designated as “proceeds to be used to repurchase stock from related persons (Randall Flamm and Nancy Flamm).”
Randall Flamm, in a statement, said the company wants to grow.
“TCV and Banneker are growth investors. Our mutual goal is to see IQMS become a top five ERP vendor for manufacturers worldwide,” Flamm said. “With TCV's investment, we have the resources to ensure IQMS is properly funded and managed for the future.
“IQMS will continue to grow as a leader in manufacturing ERP and automation and our customers and prospects can look forward to increased investment in the product and the company,” he said.
IQMS said that including the new $40 million investment, TCV and Banneker have invested a total of $75 million over the past year.
The company said Nemmers “has a proven track record of taking companies to the next level of sales and operational excellence.”
“IQMS is a strong business in a healthy marketplace, and our initial August 2014 investment in IQMS has developed into a successful partnership,” said Jake Reynolds, TCV general partner.
“With its combination of ERP and MES in a single package, IQMS is reinventing the way people think about manufacturing software, and we are excited to deepen our investment in the company and the manufacturing industry,” he said.
Nemmers was with HighJump, a maker of supply chain management software, until earlier this year and had been CEO and managing partner of DataTrend Information Systems, reportedly helping to grow that company from a startup to $54 million in annual sales.
