Announcing the acquisition, Oxygen, Stuart Dickinson, says Oxygen’s focus on growth was driven by SAP’s own forecast of doubling its revenues between 2010 and 2015 and the company, as a specialist SAP software and services company operating across Australia and New Zealand, was investing in people and resources to ensure it had “the breadth and depth, and the scale, that the rapidly growing SAP market” required.
“The Stream acquisition adds around 40 high quality SAP-trained consulting and support staff. Stream’s customer satisfaction ratings are very high, as are customer and staff retention levels. The two businesses are highly complementary with no overlap in sales pipeline.
According to Dickinson, the acquisition is in line with the strategic growth plans of Oxygen’s parent company, UXC (ASX:UXC), which aims to further enhance its already strong reputation and leadership in market share within the ERP application market. The acquisition is conditional on mutual contractual requirements being met, with completion expected by the end of this month.
Stream - owned by its four directors - was founded in 2006 and reports annual revenues of around $10million with offices in Sydney, Melbourne, Brisbane and Perth, with its offering of an end-to-end service for SAP enterprise resource planning, Netweaver, business intelligence and SAP All-in-One software sales, integration and support.
“The combined entity will be very balanced in terms of its geographical reach and sector strengths,” Dickinson said. “It will enable Oxygen to further extend its portfolio of services and give it improved delivery capability across both medium sized businesses and the enterprise market.”
Stream Managing Director, Dawie Gerber, said the union of the two companies would build a larger and more competitive business and create a route to market for Stream to introduce its “innovative IP” to existing Oxygen customers.