Agilysys (VARBusiness 500 Rank: 68) this morning announced its president, chairman and CEO Arthur Rhein would resign immediately and that Martin F. Ellis, executive vice president, treasurer and chief financial officer, has been appointed as president and chief executive officer of the $923.8-million solution provider. Keith M. Kolerus, a current Agilysys director has been named non-executive chairman.
In addition, Kenneth J. Kossin, Jr., vice president and controller, has been elected senior vice president and chief financial officer, and Curtis Stout, currently vice president, business planning and corporate development, will become vice president and treasurer.
Agilysys' stock has been hit hard during the past year. Last Oct. 22, the VAR's stock was $16.98; today's midday price was $6.13.
The executive changes are part of a realignment initiative the company embarked on this summer. In June, Agilysys started to explore a range of strategic and financial alternatives to enhance shareholder value. According to the company, "these alternatives included, but were not limited to, continued implementation of Agilysys' current strategic growth plan, a sale of certain assets or the entire company, formation of joint ventures, and a change to the company's capital structure."
As a result of that review process, and due to the current economic climate, the company determined "there is not a meaningful opportunity to monetize intrinsic value through the sale of all or part of the company at this time," said Thomas A. Commes, co-chair of a special committee of the Board, in a statement. "Accordingly, the decision was reached to expedite and expand the company's overhead cost-reduction initiatives. Our three business groups " Hospitality Solutions Group, Retail Solutions Group and Technology Solutions Group " continue to build outstanding potential for the future, and they will be managed to further improve profitability."
Rhein had been with the company the last 26 years and was president and CEO since 2002. (He was elected chairman the following year.)
Rhein's replacement, Ellis, has been with Agilysys for the last five years; previously, he was senior vice president and principal at Stern Stewart & Co., a global financial consulting firm.
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