SMS Management & Technology (ASX:SMX) has acquired Oracle Siebel CRM and business intelligence provider Bright Blue Solutions for $6.7 million in cash and shares.
Only one third of the purchase price would be paid on completion of the acquisition.The remaining two thirds was to be paid in two years, based mainly on sales and revenue performance.
All 37 staff would join SMS&T under the acquisition, which would add $9 million in revenue per year for SMS - translating to $2 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
It would also enhance SMS's capability in front office business intelligence applications, the company said.
It established SMS as the largest specialist provider of Siebel expertise nationally outside of the international providers, the integrator claimed.
Matthew Kaufman, marketing director for SMS Management & Technology told CRN that the acquisition was a continuation of SMS's "five year strategy and the tenth acquisition the company has made in several years".
"We've become pretty good at them [acquisitions] and we anticipate a smooth integration [of the two businesses]. We're already working very closely on business development opportunities since we've been working on joint bids and joint responses for some time," said Kaufman.
He added: "The cultural fit is really strong, which is what we look for in these acquisitions."
"The capabilities that Bright Blue brings to SMS are well aligned with our existing Business and Technology Practices, further deepening the services we can extend to our clients nationally," said SMS chief Tom Stianos.
"We are confident that this new practice will prosper as part of the broader SMS enterprise," he said.
Employees
The three Bright Blue directors including managing director Lachlan Hanly and co-owners David Wong and Matthew Yoon will head up the CRM practice for SMS.
Bright Blue managing director Lachlan Hanly said the acquistion gave the firm the opportunity to extend services to the broader SMS client base.
"It also expands the career opportunities for staff in both companies," he said.
Bright Blue Solutions had operations in Melbourne, Sydney and Canberra.
Kaufman said staff would be working out of SMS' offices in Sydney and Melbourne but "they largely work on-site, so they'll be mostly out on client locations".
The businesses would be integrated over the next three months.
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