SMS acquisition extends capabilities to ECM, BPM

Gordon Peters
Wednesday, 22 September 2010 01:30

IT Industry - Deals

SMS Management & Technology has acquired specialist systems integration firm, Renewtek in a deal which SMS says will extend its systems integration practice into the high demand ECM and BPM domains.

Renewtek specialises in enterprise content management (ECM) and business process management (BPM) solutions and SMS says the company is a leading implementation provider of IBM's Filenet solutions, one of the 'dominant ECM and BPM tools for the enterprise.' 

SMS CEO Tom Stianos said, 'the acquisition of Renewtek fits nicely within the existing SMS business and will allow us to offer solutions to our existing clients within the ECM and BPM solution areas. The acquisition will also bring to SMS an offshore established development and support facility, expanding our opportunity to service different aspects of our clients' projects as we extend our dual-shoring strategy to support local demand.'

According to Stianos, key benefits of the acquisition include annualised contribution of approximately $17.3m in revenues and $2.5m EBITDA, the addition of approximately 140 specialist resources with deep domain skills in an expanding segment, a proven and mature offshore development and support facility in Vietnam, and a proven management team to expand the business within SMS.

Stianos said SMS was impressed by the maturity of the Renewtek business, including the creation of specific development tools and methods, 'all designed to accelerate and streamline the projects that they deliver.'

'We are confident that this new capability will prosper within SMS, giving it ready access to our five regional hubs and the national sales team. Renewtek has a strong sales pipeline in markets where SMS is already delivering other services, and their development tools will further strengthen our foothold in the financial services sector.'

Renewtek principal, Fergus Porter, said, the business had been established in 2004 with a view of becoming Australia's 'leading technical consultancy and project delivery specialists within the ECM and BPM domains.'

'We have made significant progress in achieving this goal and we strongly believe that our next chapter - as part of SMS - will bring our aspirations to life. With the support of SMS and its balance sheet, Renewtek can now take on larger scale projects, positioning us well for the future.'

Stianos said the acquired business will be integrated as part of the SMS systems integration practice, and Renewtek principals Porter, Craig Mullan and Patrick Lehane will take on leadership roles within SMS. 'The business will be integrated over the next 3 months and will be EPS accretive from January 2011.'