Home Industry Deals UXC buys ServiceNow specialist Keystone

UXC has acquired ServiceNow reseller and services provider Keystone Management Solutions for around $25 million.

UXC announced a partnership with ServiceNow in August as part of a growth strategy. Company officials said bringing Keystone under the UXC umbrella expands UXC's cloud-based solutions capabilities and increases its subscription-based annuity revenue.

Keystone CEO Dion Williams will report to UXC Managing Director Cris Nicolli, and the business will be branded UXC Keystone.

UXC managing director Cris Nicolli said "The acquisition of Keystone and the partnership with ServiceNow is very much part of the UXC strategic direction and is an exciting key growth opportunity for UXC."

"At UXC we are seeking to find new growth opportunities while continuing to build deep capabilities and deliver outstanding customer centric solutions that can drive earnings growth," he explained.

"We see the high growth cloud-based IT Service Automation market, coupled with our strong ITSM experience in Australia and South East Asia, as ideal platforms to combine with Keystone.

"The expansion is also a compelling opportunity for a strong return on our investment and furthering our strategy of building our cloud services leadership."

Mr Williams and his fellow Keystone directors Paul Heath and Neil McKinnon will remain with the company.

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"This is a great opportunity for our staff and customers to leverage the capabilities and market reach of UXC to advance the growth of the partnership with ServiceNow," said Mr Williams.

"We see the track record of UXC in the service management market as very complimentary and together we can develop greater outcomes for our clients."

The cash and shares deal is worth between $24m and $28m depending on the achievement of certain performance and earnings targets through the end of FY15.

Keystone, founded in 2007, is the largest and leading ServiceNow Partner in the Asia Pacific region. It has more than 120 ServiceNow customers, including the Queensland Government, RACV, Uniting Care Queensland, and the University of Western Australia.

ServiceNow provides cloud-based solutions to automate enterprise IT operations.

"As more and more enterprise customers choose ServiceNow to transform IT by automating and managing IT service relationships across the enterprise, we are looking for partners that offer capabilities in support of such transformational programs, ensuring that our customers can realise their intended benefits," said ServiceNow APJ vice president Jimmy Fitzgerald.

"The combined capability and UXC's experience in ITSM solutions, IT strategy, consulting and managed services together with the strength and experience of Keystone places it in a unique market position to lead such transformations."

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Stephen Withers

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Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences, a PhD in Industrial and Business Studies, and is a senior member of the Australian Computer Society.

 

 

 

 

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