SMS strengthens business with acquisition

Peter Dinham
Thursday, 07 May 2009 07:02

IT Industry - Strategy

Technology consultancy, SMS Management & Technology has acquired data management services group, Pelion, which SMS says will add $6 million in revenue to the business.

SMS CEO Tom Stianos says Pelion was acquired for three times historical earnings, with two thirds of the purchase price subject to performance over the next three years.

Pelion will be integrated with SMS over the next three months and Stianos says the merger will extend SMS’s data management practice in Sydney and increase the company’s capability to meet client needs in the growing area of business intelligence (BI) and information management.

According to Stianos, the acquisition gives SMS access to Pelion’s “deep domain knowledge and well developed intellectual property” and establishes new client relationships in key sectors such as financial services, government, manufacturing, pharmaceuticals, transport and logistics.

“Leveraging Pelion’s solid market reputation established over eight years will further strengthen the SMS NSW business. I am delighted that Pelion is joining the SMS team, we have already partnered with them on several projects and I am confident of the synergy benefits and cultural fit. Pelion brings us another specialist practice with consistent revenues and a growing number of annuity contracts.”

Pelion managing director, David Ertle said the acquisition by SMS would help the company achieve its goals of “excellence in service delivery”, accelerate growth and provide additional complementary services to its clients.

Ertle will head up the NSW data management practice of acquired by SMS from Pelion.