LPA News

Xelus Spinning off Unit

Four execs will buy the custom software division, call it LPA
By Richard Mullins - Rochester, NY - January 26, 2002
(Photo courtesy of Democrat & Chronicle.)

Xelus Inc., the Perinton software developer, will spin off its custom software division into an independent company called LPA Systems Inc.

Four current managers plan to buy the division for an undisclosed amount next week.

"Heck of a time to start a business," said Donald Soule, founder and president of the new company. "But the demand these days for quality software development service is significant."

The buyout will save about 20 jobs, the managers said.

"We anticipate hiring (more) pretty quickly." said Ray Shady, who is vice president of marketing for the new company. No hiring goals have been decided.

Xelus started 30 years ago as LPA Software, a designer of custom software. In the 1990s, it started selling pre-packaged software to large companies and managing supply chains and company assets.

The company changed its name to Xelus in 2000, two years after three New York City venture capital firms took a controlling interest in the company.

The original custom software division remains profitable but no longer fits into Xelus' business model, the managers said.

"We at Xelus get many requests to do custom development projects that fall outside the scope of our long-term vision and solutions roadmap," said Mike Fabiaschi, president of Xelus. "The custom software development group, as an independent entity, is the perfect team to support these companies' custom needs."

Gentry Politte and Katrina Adams also are participating in the buyout. Politte is the new company's vice president of business development; Adams, director of operations.

The four plan to formally announce the deal Tuesday at Woodcliff Office Park. The new LPA Systems will begin operations in space leased from Xelus.

About LPA Systems

LPA Systems is a Business Performance Management firm based in Fairport, New York, that is committed to helping organizations improve their Business Process operations. LPA has a track record of success in commercial and government markets: the quality of our consultants and developers, our experience, our process methodologies and our customer focus ensure that every client engagement delivers predictable and measurable value.

For more information, contact us at info@lpasystems.com or call toll-free at 866-783-9900.